ITA No. 6174/MUM/2025

Parties Involved

Facts Summary

The assessee, Bhavin Kumar Rameshkumar Jain, filed his return of income electronically on 08.08.2019, declaring a gross total income of ₹36,29,172/- and total taxable income of ₹29,17,550/-. Subsequently, a search and seizure action under section 132 of the Income-tax Act, 1961 was conducted in the case of a political party, namely Rashtriya Samajwadi Party (Secular). During the search, incriminating materials including bogus donation receipts and WhatsApp chats were seized, revealing that the political party was involved in providing bogus deductions under sections 80GGB/80GGC of the Act. Key persons of the party admitted to these activities under oath. The Assessing Officer found that the assessee had claimed a deduction of ₹3,00,000/- under section 80GGC on account of donation made to the political party. Upon reassessment, the assessee voluntarily offered the amount of ₹3,00,000/- for taxation. However, the Assessing Officer made an addition of ₹15,000/- under section 69C of the Act, treating it as unexplained expenditure towards commission. The learned Commissioner (Appeals) deleted this addition, holding that the source of the alleged commission stood explained out of the assessee’s own disclosed income.…

Legal Issues

• 1. Whether the addition of ₹15,000/- towards alleged commission paid for obtaining bogus donation receipt was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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