CHENNAI:The Income Tax department has claimed to have found that the audit reports prepared by the Aam Aadmi Party (AAP) for donations amounting to about Rs 27 crore have discrepancies and are incorrect.
Meanwhile, reports have also emerged the I-T department has asked the Election Commission (EC) to cancel AAP’s status as a political party following the findings.
The IT department has been investigating the donations list of the party for over an year.
In a report submitted to the EC, it has said the records of donations made to the AAP during 2013-14 and 2014-15 had “factual discrepancies” and did not match with the actual funds received by it from various donors.
As per law, parties prepare audit reports, in consultation with their charted accountants, and submit a copy to the I-T department. Officials said the alleged discrepancies in the donation records are of about Rs 27 crore and added the Treasurer of the party has acknowledged “certain errors” in these records in their communication with the taxman.
The I-T report, they said, has suggested the violations are in contravention of tax laws that govern political donations as stipulated under the Income Tax Act, 1961. They said this could form the basis for the cancellation of the tax exemptions given under the I-T Act to AAP and could also follow a stringent action of de-registration of the party.
AAP’s national convenor Arvind Kejriwal alleged it was a “dirty trick” by Prime Minister Narendra Modi to get the AAP deregistered due to fear of loss in Punjab and Goa.