The Supreme Court on Monday issued notice to the Income tax department on a petition filed by the Congress seeking exemption from paying income tax for the assessment year 1994-95.
The Congress claimed that the Income tax Appellate Tribunal and the Delhi High Court failed to take note of the fact that the exemption available to it under Section 13A of the Income Tax Act was available prior to this period (beginning 1986-87) and even after this period (till 2014-15).
However, for the assessment year 1994-95, the exemption under Section 13A was denied on account of certain procedural formalities that later stood complied.
Challenging against the Delhi High Cour’s order of March 23, 2016 by which the exemption for paying income tax was rejected, the party showed that in the final assessment done by the income tax authorities for 1994-95, a
net loss of approximately Rs 60 lakh was computed. “Thus on remand, it was found as a matter of fact that there
was no assessable income and if there
was no income, there could not have been any levy of income tax,” the
petition said.
The bench of Justices Kurian Joseph and RF Nariman issued notice to the Centre seeking response on the petition filed by the oldest political party.