Political Party Shocked with Rs. 199 Crore against Donations for late filing of ITR [Read Order]

The Income Tax Appellate Tribunal (ITAT) has rejected granting an exemption on income tax on donations worth Rs. 199 crores. The Old Congress party is in Shock. They opposed the I-T department’s notice, which asked it to pay tax on income of around Rs. 199 crores.

The ITAT dismissed the congress appeal against under section 13A of the Income Tax Act for the year 2017-18. Congress has claimed that the money came from donations and should be exempted from tax.

According to ITAT the congress filed its income tax return on February 2, 2019, over a month after the extended deadline of December 31, 2018.

Though, under section 139(4B) of the Act, political parties must file their returns within the “due date” to qualify for this exemption. The ITAT rejected Congress argument that a belated return, like those permitted for charitable trusts under Section 12A, should suffice.