New Delhi, Nov 24: The Supreme Court on Monday issued notices to the Centre, the Election Commission (EC), and major political parties on a plea challenging the legality of the Income Tax Act provision that permits political parties to accept anonymous cash donations below ₹2,000.
A bench of Justices Vikram Nath and Sandeep Mehta sought responses within four weeks after petitioner Khem Singh Bhati argued that the provision lacks transparency and violates voters’ right to information. The plea contends that such undisclosed donations undermine the integrity of elections by concealing the identity and motives of donors.
At the outset, the bench questioned why the petitioner had not approached the high court, but later agreed to hear the matter. Notices were issued to the Centre, EC, and parties including the BJP and Congress.
The petition seeks to strike down Section 13A(d) of the Income Tax Act, which exempts contributions below ₹2,000 from mandatory disclosure. It also cites the Supreme Court’s 2024 verdict scrapping the electoral bonds scheme, arguing that transparency in political funding cannot be compromised.
The plea urges the EC to mandate that no political party receive any cash donations, make full disclosure of all contributors, and scrutinise Form 24A reports of recognised parties. It also seeks action against parties failing to disclose donor details and demands independent audits of party accounts.
Additionally, the petitioner asks the CBDT to examine parties’ income tax returns for the past five years and initiate proceedings for violations related to undisclosed contributions. (Agencies)
