Case LawsIncome Tax
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Section 13A compliance: failure to meet proviso conditions bars political party exemption and informs stay assessment approach.
A registered political party's claim of exemption under Section 13A was rejected for failure to meet proviso conditions, including receipt of donations in breach of the cash donation prohibition; the tribunal treated non exempt voluntary contributions as income from other sources, disallowing deductions; allegations of mala fides were dismissed due to the party's procedural delays; and the tribunal's prima facie framework for stay applications-assessing merits, undue hardship, and likelihood of success-was upheld, with liberty to apply afresh to the tribunal given changed circumstances.