# ITAT Ahmedabad deletes Rs 2.31 lakh tax penalty 2026-08-15T05:55:35+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Income Tax Appellate Tribunal, Ahmedabad, has cancelled a Rs 2.31 lakh penalty imposed on Niket Maheshbhai Shah over a Rs 3.71 lakh deduction claimed for a political donation under Section 80GGC. Shah had donated through a banking channel to Manav Adhikar National Party and held a certificate from it. The tax department later disallowed the deduction after reopening his assessment following a search involving the party. Shah accepted the disallowance and paid the tax demand, but challenged the penalty. The tribunal said rejection of a deduction does not automatically prove under-reporting or misreporting. It also found that the penalty order did not state the precise charge or explain how the misreporting conditions under Section 270A(9) applied. The ruling concerns the penalty, not approval of the deduction. ## Coverage - livemint.com Tags: income tax department, ITAT, Manav Adhikar National Party, Niket Maheshbhai Shah Canonical: https://indianopinion.org/itat-ahmedabad-deletes-rs-2-31-lakh-tax-penalty/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/itat-ahmedabad-deletes-rs-2-31-lakh-tax-penalty/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.