The assessee, Indian National Congress (INC), a recognized national political party registered under Section 29A of the Representation of People Act, 1951, filed its income tax return for AY 2018\u201319 on 02.02.2019, declaring nil income and claiming exemption of \u20b9199.15 crores under Section 13A of the Income -Tax Act, 1961. The return was filed after the extended due date of 31.12.2018. The Assessing Officer completed scrutiny under Section 143(3), disallowed the exemption, and treated the entire amount as taxable income on two main grounds: (i) the return was filed beyond the time limit prescribed under Section 139(4B); and (ii) INC received cash donations exceeding \u20b92,000, amounting to \u20b914.49 lakhs, in violation of the first proviso (clause d) to Section 13A. On appeal the assessee contended that the return was validly filed within the extended time under Section 139(4), and that the donations were voluntary contributions from identifiable individuals, mostly elected representatives, with complete PAN and address details, thereby defeating the mischief of anonymity which the law intended to curb. It further relied on CBDT clarification dated 23.04.2019 and judicial precedents to argue that the term “due date” under Section 13A includes the timeline under Section 139(4). It also claimed that even if the exemption was to be denied, only the net surplus after expenditure (\u20b91.71 Cr) should be taxed, and not the gross amount.\u00a0 The CIT(A) upheld the AO\u2019s findings, holding that the provisions of Section 13A require strict compliance, and failure to meet even one condition disentitles the assessee from exemption. On appeal the Tribunal dismissed the appeal, affirming that both the delay in filing the return and the acceptance of cash donations above the permissible limit constituted breaches of mandatory conditions under Section 13A. It noted that the exemption under this provision is a special benefit, not a matter of right, and must be strictly construed. The Tribunal also rejected the distinction sought to be made between donations and voluntary contributions, noting that the assessee\u2019s own records and submissions used the terms interchangeably. Citing prior judgments including CIT v. Indian National Congress,, (ITA No. 145 of 2001) ( Delhi)(HC), \u00a0CIT v.\u00a0 Indian National Congress( ITA 180 of 2001 ) ( Delhi)( HC), \u00a0CIT v. Janata Party (ITA No. 188 of 2002 ) (Delhi)(HC), the Tribunal concluded that once the statutory preconditions were violated, the full exemption had to be denied, and the total receipt was rightly brought to tax under \u201cincome from other sources.\u201d\u00a0 ( ITA No. 1609\/Del\/2023,dt. \u00a021.07.2025, ) (AY. 2018-19 )\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 13A:Political parties \u2013 Delay in filing return \u2013 Cash donations exceeding limit \u2013 Strict compliance required \u2013Not entitle to exemption if the return is filed after due date – Exemption denied \u2013 Appeal dismissed . [S. 13A(d), 139(1), 139(4), 139(4B), 143(3), Representation of People Act, 1951, S. 29A]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-55517","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-err","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=55517"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55517\/revisions"}],"predecessor-version":[{"id":55518,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/55517\/revisions\/55518"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=55517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=55517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=55517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}