No Tax Relief For Congress, Tribunal Upholds Demand On ₹199 Crore Donations

In a significant setback for the Congress party, the Income Tax Appellate Tribunal (ITAT) on Tuesday dismissed its appeal against a tax demand on an income of over ₹199 crore for the 2017-18 assessment year.

The tribunal upheld the Income Tax Department’s decision, ruling that the party is not eligible for tax exemption on the amount because it failed to file its tax returns by the stipulated deadline.

The case pertains to a notice issued by the Income Tax Department asking the Congress party to pay tax on the income of over ₹199 crore received during the financial year.
The party had challenged the notice, arguing that the amount came from political donations and should therefore be exempt from tax under Indian law.

However, a key condition for political parties to claim such an exemption is the timely filing of their income tax returns. The ITAT’s ruling affirms the tax authority’s position that since the Congress failed to meet this deadline, it forfeited its right to the tax exemption for that year.