Supreme Court on Friday refused to give urgent hearing to a writ petition challenging Tax exemption to political parties. The apex court said that it's a vey old law, and no urgency is required to hear this matter during winter vacation.
The Supreme Court fixed January 11 as the next hearing date.
A writ petition to declare certain provisions of the Income Tax Act and the Representation of People Act giving “100 per cent tax exemption” to political parties, was submitted before the Supreme Court.
The petition filed by M.L. Sharma, Supreme Court advocate 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 raised questions on why ordinary persons are taxed while political parties enjoy exemption from tax.
“Political parties registered with the Election Commission of India are 100 per cent exempted from paying Income Tax under Section 13A of Income Tax Act, 1961 as long as the political parties file their Income Tax Returns every assessment year along with their audited accounts, income/expenditure details and balance sheet,” the petition said.