In a significant legal ruling, the Income Tax Appellate Tribunal (ITAT) has dismissed the Congress party's appeal against an income tax demand of Rs 199 crore for the financial year 2018-19. The tax demand relates to party funds and stems from allegations of late filing of income tax returns and violations of cash donation limits.

The ITAT ruled that the Congress party's return filed on February 2, 2019, was not within the due date, making it ineligible for the sought exemption. This ruling upholds the original tax demand, meaning Congress will not receive any relief from the Rs 199 crore assessment. The tribunal emphasized that the failure to meet the filing deadline and adhere to the stipulated donation limits invalidated the exemption claim.

The issue arose when the Income Tax Department raised the tax demand due to discrepancies related to party funds and cash donations, which exceeded permissible limits. Despite Congress' arguments that they had met all legal requirements, the ITAT rejected the appeal, underscoring the importance of adhering to timelines and legal frameworks for tax filings.

This decision is a setback for the Congress party, as it now faces the possibility of having to settle the substantial tax demand. The ruling reflects the Indian government's continued focus on scrutinizing the financial activities of political parties and ensuring compliance with the country's tax laws.