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Donations to a registered political party were examined for eligibility for deduction under deduction for political donations after verification showed the party failed to file contribution reports under the Representation of the People Act and did not meet political party exemption compliance. The tribunal accepted factual findings that the party repeatedly claimed improper income-tax exemptions and that contribution-reporting lapses and contemporaneous statements indicated a scheme where cheque donations were returned in cash. Consequently, the donation was treated as bogus and not allowable as a deduction for the donor, and the donor's appeal against disallowance was dismissed.
Donations to a registered political party were examined for eligibility for deduction under deduction for political donations after verification showed the party failed to file contribution reports under the Representation of the People Act and did not meet political party exemption compliance. The tribunal accepted factual findings that the party repeatedly claimed improper income-tax exemptions and that contribution-reporting lapses and contemporaneous statements indicated a scheme where cheque donations were returned in cash. Consequently, the donation was treated as bogus and not allowable as a deduction for the donor, and the donor's appeal against disallowance was dismissed.
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