Supreme Court’s Interim Order on Electoral Bonds Inconsistent with Two Laws

On this Friday the Supreme Court passed interim orders regarding the electoral bonds that seem to have violated the law provisions of Section 13A (b) which is based on the Income Tax Act and Section 29C on the Representation of the People Act established in the year 1951. The Supreme Court asked the political parties to provide the details of their donors and the amount received by means of the electoral bonds in a sealed envelope to the Election Commission.

The income of the political parties has a special provision related to Section 13A of the Income Tax Act. The section notes that any income made by the political party received from any sources shall not be included in the total income of the political made in the previous year.

The Chief Justices in the bench are prominently aware of the law mentioned in Section 13A, yet they directed the political parties to disclose their income to the Income Tax department is what gets the interest piqued.

In the proviso to the 29C RPA, it clearly gives liberty to the political parties not to disclose their income. Nevertheless, the order of the Supreme Court states otherwise.