New Delhi
The main opposition party Congress has suffered a shock in the tax dispute. The Income Tax Appeal Tribunal has rejected the Congress’ appeal in the tax demand case on income of Rs 199 crore. Along with this, the tribunal has said that the Congress will not get any relief in tax demand on income of Rs 199 crore pending from FY 2017-18 and Assessment Year 2018-19. The Income Tax Appellate Tribunal (ITAT) has rejected the party’s discount claim due to late filing of income tax returns and violation of the cash donation limit. In its judgment, the tribunal said, “The return filed by the taxpayer on 02.02.2019, does not make it eligible for disputed exemption as the claim has not been made within the due date.”
Return filed after due date
Let us know that the Congress filed its income tax return on February 2, 2019, which was a lot of delay from the due date of December 31, 2018. In this return, zero income was declared by the Congress and it claimed a tax exemption on income of Rs 199.15 crore but in September 2019, during the investigation, the tax assessment officer came to know that the party had accepted Rs 14.49 lakh cash donations – many of which were more than a limit of Rs 2,000 per donor under donations.
Income Tax Commissioner (Appeal) had earlier rejected appeal
Donation of more than Rs 2000 is to be given through banking mediums like check or bank transfer as per rules. Accordingly, the entire amount was taxed. When the Congress sought exemption, the Income Tax Department rejected its claim in 2021. In March 2023, the Income Tax Commissioner (Appeal) upheld the decision. The Congress then appealed against this decision in the tribunal last year. Now the Congress is also disappointed from there.