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Whether donations to political parties should be allowed as a business expenditure or not u/s 10(2)(xv) of the I.T. Act, 1961.
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....ions contained in Board's Circular No. 1-GT of 1960 dated the 5th January, 1960 stating that in cases where a gift to a political party was made by a company under the authority of a specific clause in its Memorandum and Articles of Association, the gift had to be held as having been made in the course of carrying on the business of the company and exempted from gift-tax. 2. The question as to ....
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.... contributions by the companies to political parties could be brought to gift-tax and they are not of the view that donations or contributions to political parties are taxable gifts as they are not made for the purposes of the business and they are merely voluntary payments without consideration for money or money's worth. It has, therefore, been decided that such contributions or donations should....