ITAT Upholds Disallowance of Rs 8.50 Lakh Political Donation Deduction Under Section 80GGC:

The assessee filed an appeal against the order dated April 30, 2026, passed by the CIT(A) under Section 250 of the Income Tax Act, 1961, for Assessment Year 2024–25. During the assessment proceedings, the assessee furnished donation receipts and bank statements evidencing a payment of Rs 8,50,000 to a political party and claimed a deduction under Section 80GGC of the Act. However, upon verification, the AO found that the recipient political party was allegedly involved in bogus donation transactions. Investigation findings, including search-related material and statements recorded during the investigation, indicated the alleged misuse of deductions claimed under Section 80GGC.

Accordingly, the AO disallowed the deduction of Rs 8,50,000 and added the amount to the assessee’s total income, determining the assessed income at Rs 13,44,960. The CIT(A) subsequently dismissed the assessee’s appeal.

The Tribunal noted that the assessee did not appear at the time of hearing. Accordingly, the Tribunal proceeded to adjudicate the matter on merits based on the material available on record. The Tribunal observed that the issue was covered by its earlier decision in Saurabh Pravinbhai Patel Vs ITO Case dated April 30, 2025. In that case, the disallowance under Section 80GGC had been upheld on the basis of investigation material, the bank trail and the modus operandi of the recipient political party.

Considering the investigation findings and the judicial precedent, the Tribunal found no infirmity in the order of the CIT(A) affirming the disallowance made by the AO. The Tribunal dismissed the assessee’s appeal and upheld the disallowance of Rs 8,50,000 claimed under Section 80GGC of the Income Tax Act, 1961.