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The party wrote to the commission on March 12, saying there were no provisions under the Representation of the People Act, 1951, that stipulated political parties to send their audited annual accounts with the auditor’s report for each financial year to the poll panel before October 30 every year.
“If such a condition is to be imposed, it would require amendment to the Act,” reads the letter signed by party treasurer Motilal Vora. Business Standard has reviewed the letter, as well as the guidelines.
The party went on to allege that the Commission was "factually incorrect" while quoting the provisions the Income Tax Act. It said there is no prohibition under the Act or otherwise with regard to making cash expenditure by political parties of Rs. 20,000 and above.
"Since the proposed direction or advice is based on an incorrect understanding of the contents of section 40 (A) of the Income Tax Act, the proposal is misconceived," the letter added.
In its guidelines released on February 26, the Commission had "advised" the parties to not to make cash payment of Rs. 20,000 and above to a person or company in a day, except in villages or towns not covered by the banks. The Commission further asked the parties to write receipts for all donations worth Rs. 1,000 and above under the Representation of People's Act. The parties were told to maintain name and address of donors and submit the received donation amount within one week to party's bank account.
But it, too, didn't go down well with the Congress. "It would also require substantive amendment to the Act and it cannot be enforced by way of guidelines and instructions," Vora's letter adds.
The Commission had given parties two weeks to respond to its guidelines.
The Bharatiya Janata Party (BJP) is yet to respond; where as the Communist Party of India (Marxist) has broadly agreed to the guidelines. The Trinamool Congress has sought further clarifications and asked the Commission to keep the guidelines in "advisory" in nature. The Samajwadi Party said since it is difficult to keep records of donors, the ceiling should be increased from Rs. 1,000 to Rs. 50,000.
