Plea against I-T relief to parties rejected

The Supreme Court on Wednesday dismissed a PIL challenging Income Tax (I-T) exemptions granted to donations made to political parties.

 
A bench of Chief Justice J S Khehar and Justice D Y Chandrachud said that the decision to grant I-T exemptions is an "executive" action and did not violate any constitutional provision.

The bench said that the action did not violate the related provisions of the Income Tax Act, the Representation of the People Act and the court cannot intervene in the matter.

The court also noted that political parties required funds to further their agenda.
Advocate M L Sharma, who filed the PIL, had alleged that political parties have been granted I-T exemptions in violation of constitutional schemes as this is not available to the citizens.

The PIL had sought quashing of Section 13A of the Income Tax Act and Section 29 of the Representation of the People Act as being violative of Article 14 (right to equality) of the Constitution as they only allowed political parties the I-T exemption on donations.

The plea had also sought a direction to the CBI to register an FIR and probe political parties and their funding in the wake of demonetisation.