Big Setback for Congress: IT Tribunal Rejects Rs. 199.5 Crore Tax Exemption Appeal

Delhi/Hyderabad, July 22 (Maxim News): In a major blow to the Congress party, the Income Tax Appellate Tribunal (ITAT) has rejected its appeal seeking tax exemption on Rs. 199.5 crore for the financial year 2018–19.

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The Congress had approached the Tribunal requesting relief under Section 13A of the Income Tax Act, which allows tax exemption for political parties under certain conditions. However, the Tribunal dismissed the appeal, stating that granting such an exemption would violate provisions of the Act.

The ITAT, in its order, noted that the Congress party failed to comply with key conditions mandated for exemption under Section 13A, which include proper accounting, voluntary contributions disclosure, and audited financial records. The Tribunal observed that non-compliance made the party ineligible for the claimed exemption.

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This development comes at a time when the Congress is already facing political and financial pressures, and the verdict could significantly impact the party’s financial strategies ahead of upcoming elections.

Legal experts suggest the party may consider moving the High Court or the Supreme Court to challenge the ITAT ruling.

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