The Income Tax Appellate Tribunal (ITAT) has dismissed an appeal filed by the Indian National Congress regarding a tax demand of ₹199.15 crore for the assessment year 2018-19. The tribunal rejected the party's claim for exemption under Section 13A of the Income Tax Act, citing a late filing of income tax returns and violations of cash donation limits.

The ITAT stated that the Congress party's return, filed on February 2, 2019, was not within the "due" date to be eligible for the exemption. According to Live Law, the Tribunal rejected the party's claim for exemption on the ground that there was a violation of the conditions in Section 13A of the Income Tax Act. The "due" date for the exemption was October 31, 2018. The Congress party filed its return on 02.02.2019 declaring "nil" income after claiming section 13A exemption of Rs.199,15,26,560.

The ITAT emphasized strict compliance requirements for political parties seeking tax benefits. The bench, comprising Satbir Singh Godara (Judicial Member) and M Balaganesh (Accountant Member), stated that "the moment there is violation of such a 'due' date, section 13A 3rd proviso gets attracted, so as to result in denial of exemption to the political party concerned".

During scrutiny proceedings in September 2019, it was discovered that the Congress party had received ₹14.49 lakh in cash donations exceeding ₹2,000 from various individuals. Section 13A(d) of the Income Tax Act, amended by the Finance Act 2017, mandates that political parties can only receive donations above ₹2,000 through banking channels, such as account payee cheques or electronic transfers.

The party's total receipts for the year were ₹199.15 crore against expenses of ₹197.43 crore, reflecting a surplus of ₹1.71 crore. However, the assessment order dated July 6, 2021, denied the entire exemption claim, making the full receipt amount taxable. The Commissioner of Income Tax (Appeals) upheld this decision on March 28, 2023, which led the party to appeal to the ITAT.