Supreme Court rejects PIL on income tax exemptions to political parties
New Delhi: The Supreme Court on Wednesday dismissed a PIL challenging the Centre’s decision to grant income tax exemption to political parties on receiving voluntary contributions.
A Bench of Chief Justice J.S. Khehar and Justices N.V. Ramana and D.Y. Chandrachud said as a policy the executive can grant exemptions to political parties from payment of income tax.
When petitioner and lawyer M.L. Sharma said the exemption was contrary to statutory provisions, the CJI said “No, it is not contrary, the executive chooses it. The Government can choose how and on what grounds it can repudiate tax. It is the will of those who govern to decide on it and not this court.” The CJI asked the counsel when income from agricultural produce is exempt, why not this exemption.
The petition challenged the constitutionality of Section 13A of the Income Tax Act of 1961 and Section 29 of the Representation of People Act, 1951. The petition has asked the apex court to decide on why ordinary persons are taxed while political parties enjoy exemption from tax.
The PIL said opaque political funding is the foundation of black money in any economy. It is that evil that feeds and nurtures all other forms of illegal cash.
