Case Law Details
Indian National Congress All India Congress Committee Vs DCIT (ITAT Delhi)
ITAT Delhi held that in order to claim exemption under Section 13A of the Income Tax Act by the political party it is necessary to furnish return of income by the ‘due date’ as per Section 139 of the Income Tax Act.
Facts- The Applicant is a Political Party registered u/s. 29A of the Representation of the People Act, 1951. AO completed an assessment u/s. 143(3) of the Income-tax Act, 1961 at an income of Rs.1,99,15,26,560/-, as against Nil income declared by the assessee. The difference between the returned and assessed income is solely for the reason that assessee’s claim for exemption u/s. 13A of the Act has been denied by AO, and, accordingly, the entire income of Rs.1,99,15,26,560/- has been held to be taxable. AO has faulted the claim of exemption u/s. 13A of the Act on two grounds viz., that the return of income filed by the assessee on 2nd February, 2019 u/s. 139(4) of the Act contravenes the time limit prescribed in the third Proviso to Section 13A of the Act; and, that clause (d) of the first Proviso to Section 13A of the Act has been violated since the assessee has received donations of Rs.14,49,000/- in cash from various persons, each donation being in excess of Rs.2,000/-.
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superbly discussed.