The Congress party has been deaalt a major blow in its long-running tax dispute, as the income tax appellate Tribunal (Itat) Rejected its appearance
The party had challenged the income tax department’s move to tax income over Rs 199 Crore, Asserting that the Amount was sourced from Donations and Should Qualify for Examption. However, the Tribunal Held Firm, Agreeing with the tax authorities that the examption should not be granted due to to prosely lapses and statutory violations, reported India TODAY.
Tribunal Cites Delayed Filing and Cash Donation Breach
The core of the dispute lies in the party’s delayed income tax filing. Congress Submitted Its Return on February 2, 2019, Declaring Nil Income While Seeking Examption On Rs 199.15 Crore Under Section 13a of the income tax act. However, this submission was made beyond the extended deadline of December 31, 2018, for that assessment year, as outlined Under Section 139. 139 (1), and Congress’ Delay Invalidated Its Claim.
Further scrutiny of the party’s finances during September 2019 revised that Congress had collected Rs 14.49 lakh in cash donations from individual donors contributing more than Rs 2,000. This contraavenes the rules Introduced by the Finance Act, 2017, which mandates that political parties must accept such donations exclusively through banking channels under section 13A (d).
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No relife on alternative pleas eite, tribunal stands firm
Despite Reporting Receipts of Rs 199.15 Crore and Expenses of Rs 197.43 Crore – a Surplus of Rs 1.71 Crore – The July 2021 Assessment Order Disallowed The Examption Entarely, Taxing the full amault. The Commissioner of Income Tax (appeals) uphed the order in March 2023, and now the itat has also dispensed the party’s challenge.
The Tribunal Turned Down Congress’ Alternate Please To Claim Expensese Deductions, Citing A 2016 Delhi High Court Judgment Involving The Party, Where Similar Violations were deamed to NULLIFYEFYEFYEFYEFYE ONE. It reiterated that examption provisions must be interpreted strictly and pointed to a clear breach of conditions under the income tax act.
