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Not for us to make political parties file IT returns: apex court

New Delhi: The Supreme Court on Friday rejected a public interest litigation petition to compel all political parties to file income tax returns and disclose audited statements of accounts.

Chief Justice K.G. Balakrishnan, heading a Bench that included Justice P. Sathasivam, told counsel Kamini Jaiswal: “It is publicity interest litigation on the eve of elections. We don’t think this is our duty to do so.”

When counsel said even major national parties had not filed income tax returns, the Chief Justice said: “It was for the Income Tax Department to look into the issue. Why should we interfere in it?” If any party failed to file returns, it would face the consequences. “It is difficult to give such directions.”

The Association of Democratic Reforms, in its petition, said the apex court had in 1996 held that political parties were under an obligation to furnish a return of income for each assessment year. However, the parties, in patent violation of the law, had neither maintained audited accounts nor paid tax since 1979-80. It was common knowledge that the parties were using money ostentatiously in elections to further the prospects of their candidates. And despite their failure to file returns, authorities were not taking any action, the petition said.

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