- Congress denied relief on Rs 199 crore income tax demand for 2018-19
- Income Tax Appellate Tribunal dismissed the party's exemption claim due to the late filing of returns
- Congress filed income tax return on 2 February 2019, well after the 31 December 2018 deadline
The Congress will not get any relief for the income tax demand to the tune of Rs 199 crore in party funds, pending from 2018-19.
The Income Tax Appellate Tribunal or ITAT has dismissed the party's claim for exemption due to late filing of IT returns and violations of cash donation limits.
"The assessee's return filed on 2.02.2019 is not within the 'due' date to make it eligible for the impugned exemption," the ITAT said.
The Congress had filed its income tax return on February 2, 2019 - well beyond the due date of December 31, 2018 -- and declared nil income. It also claimed an exemption of Rs 199.15 crore.
But in September 2019, the Assessing Officer found out during scrutiny that the party accepted Rs 14.49 lakh in cash donations - many of the donations exceeding the Rs 2,000 per donor limit under the law.
Donations above Rs 2000 are to be paid through banking channels like cheques or bank transfer.
Tax was accordingly levied on the whole amount.
When the Congress sought exemption, the IT department denied the claim in 2021. In March 2023, the Commissioner of Income Tax (Appeals) upheld the decision.
The Appellate Tribunal, which the Congress had since approached, refused to provide any interim relief last year.
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