Congress Faces Hefty Tax Bill: ITAT Upholds Rs 234 Crore Liability
The Income Tax Appellate Tribunal has upheld a Rs 199.15 crore tax demand against Indian National Congress for the assessment year 2018-19, citing violations of Section 13A. Additional penalties bring the total liability to approximately Rs 234 crore, marking a significant financial burden for the party.
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- India
In a significant setback for the Indian National Congress, the Income Tax Appellate Tribunal (ITAT), Delhi Bench, has confirmed a tax demand amounting to Rs 199.15 crore for the assessment year 2018-19. The tribunal denied Congress's claim for exemption under Section 13A of the Income Tax Act, citing violations of critical conditions.
The ITAT found that Congress missed the extended tax return deadline of December 31, 2018, violating Section 13A's requirements for political parties seeking exemption. Additionally, Congress received cash contributions exceeding the Rs 2,000 limit, further contravening the law despite providing donor details mostly from its elected officials.
The ruling includes penalties and interest charges under various sections, increasing the total financial liability to approximately Rs 234 crore. An earlier appeal by Congress to the CIT (Appeals) was dismissed in March 2023, compounding the party's challenges.
(With inputs from agencies.)
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