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Supreme Court News: The Supreme Court sought response from the Centre, Election Commission and parties including BJP-Congress on a petition challenging the validity of anonymous cash donations under Section 13A of the Income Tax Act. The petition demands the repeal of clause (d) of Section 13A of the Income Tax Act, 1961, declaring it unconstitutional.
New Delhi. The Supreme Court on Monday sought response from the Center and others on a plea challenging the validity of a provision of the Income Tax Act allowing political parties to accept ‘anonymous’ cash donations of less than Rs 2,000. The petition states that this lack of transparency undermines the integrity of the electoral process, as it deprives voters of vital information about the source of political funding, including donors and their motives, thereby depriving them of making a rational, intelligent and fully informed decision while casting their vote.
The apex court has issued notice to the Centre, Election Commission and others and sought response on the petition. The petition also sought a direction to the Election Commission to prescribe as a condition for the registration of a political party and allotment of election symbol that no political party can receive any amount in cash. A bench of Justice Vikram Nath and Justice Sandeep Mehta said that the case will be listed for hearing after four weeks.
At the outset, the bench asked senior advocate Vijay Hansaria, appearing for petitioner Khem Singh Bhati along with advocate Sneha Kalita, why he had not moved the high court earlier. The bench said, ‘Let the High Court consider it.’ Hansaria said that this petition is related to all political parties across the country and the funding they receive. Agreeing to hear the petition, the bench issued notices to the Election Commission, the Center and several political parties like BJP and Congress, among others.
The petition demands the repeal of clause (d) of Section 13A of the Income Tax Act, 1961 as unconstitutional and also cites the 2024 decision of the Supreme Court, in which the electoral bond scheme was cancelled. The petition filed through advocate Jayesh K Unnikrishnan said, ‘The petitioner wants a direction that the political parties should disclose the name and all other details of the person giving any money to them and that no amount should be received in cash, so that transparency in political donations is maintained.’
Section 13A of the Act deals with special provisions related to income of political parties. The petition said that Section 13A has been added to the Act and interest on security deposit received by political parties, income from house/property, income from other sources, and any amount received as voluntary donations have been exempted from the calculation of total income.
The petition has also sought direction that the Election Commission should scrutinize the Form 24A (donation details) of all recognized political parties and deposit the amount back from the concerned parties in the donations in which the donor’s address or PAN is not given. The petition also sought direction to the Central Board of Direct Taxes (CBDT) to scrutinize the income tax returns and audit reports filed by political parties under sections 142 and 143 of the Income Tax Act during the last five years.
