ITAT Mumbai Rejects Tax Deduction Claim Over Fraudulent Political Donation Scheme

The Income Tax Appellate Tribunal (ITAT) Mumbai rejected a Section 80GGC tax deduction claim by Mr. Thorat, who donated Rs 2 lakh to a registered political party. The tribunal found the donation fraudulent, as the party allegedly operated a cash-back scheme, returning donations after deducting a commission and lacking a verifiable office. The Assessing Officer and ITAT upheld the disallowance, emphasizing the donation's lack of genuineness despite being made through banking channels.