Commissioner Of Income Tax, … vs Janata Party on 23 March, 2016

Background facts
2. The Respondent Assessee is a political party registered under the
Representation of the People Act, 1951 (‘RP Act’). It was formed on 3rd

ITA No.188 of 2002 Page 1 of 27
May, 1977. According to the Assessee there were three major splits in the
party. The first occurred on 18th July 1979, when Mr. Chaudhary Charan
Singh left to form the Lok Dal. The second split occurred on 4th April 1980,
when Mr. Atal Bihari Vajpayee left to form the Bharatiya Janata Party
(‘BJP’) and the third in July 1989, when Mr. Madhu Dandavate, Mr. Ajit
Singh etc. left to form the Janata Dal. It is stated that on 12th November
1990, Dr. Subramanian Swamy was elected as the President of the party and
he appointed new office bearers. It is stated that Dr Swamy opened an
account of the central office of the party with Vijaya Bank, New Delhi. The
voluntary contributions collected in the various States were brought (mostly
in cash) by the office bearers to Delhi where they were deposited in the
aforementioned bank account. The Assessee’s case is that from this account
funds were disbursed to the various State units through demand drafts or
telegraphic bank transfers. It is stated that a numbered signed receipt was
given by the collecting party volunteer to the donor for each voluntary
contribution.

Source: Indian Kanoon

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