Friday, March 20, 2009

AP High Court asks political parties to file IT returns

By S A Ishaqui
Hyderabad, March 19 :A division bench comprising Chief Justice Anil R Dave and Justice RameshRanganathan of the AP High Court on Thursday issued notices to the seven major political parties, including Praja Rajyam, seeking their version on their alleged failure to file income tax returns as per the provisions of the Income Tax Act.
The bench was dealing with a public interest litigation filed by Mr J Narayana Swamy, an advocate of Ananthpur .
According to the petitioner, Section 29 (B) of the Representation of PeoplesAct 1951, envisages the recognised parties to accept contributions from the individuals as well as the organisations. During the amendment to the RPAct , Section 29 (C) was incorporated to curtail the black money role in the election and spending by candidates.
The relevant Section mandates the political parties to file their tax returns under Section 13 A and Section 139 of the Income Tax Act.The petitioner alleged that Congress, Telugu Desam , BJP , CPI, CPM ,TRS, and Praja Rajyam parties did not file the returns since years.

He urged the court to direct the Election Commission to stop the benefits which are being enjoyed by the political parties under Section 78A and 78B and the allotment of common symbol until all the parties comply with the mandatory provisions under the Act.

He also urged the court to direct theEC to derecognise the parties.The Court asked the petitioner to take the notices on behalf of all the political parties and serve them ,so they can file their versions on the allegations levelled against them in the petition.

The court also asked theCentre and state governments and the EC to file their counter affidavits. Thecourt granted four weeks to the respondents to file their replies

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