JD loses I-T exemption

While the JD has received tax notices for six financial years, the real crunch for it has come in 1995-96, in which it showed donations to the tune of Rs 8.5 crore collected by its former Orissa unit president, Biju Patnaik. For all 24 State units, the party had claimed an income of Rs 13.2 crore and has now invited tax totalling Rs 5.2 crore. Along with interest and late filing fee, the tax to be paid for this year alone is Rs 9.5 crore.

In the previous two years, 1993-94 and 1994-95 forwhich assessments have been completed, the JD has been slapped with tax notices totalling Rs 2.4 crore and Rs 1.9 crore respectively. The tax notices for other years are: Rs 4.9 cr for 1990-91, Rs 1.7 cr for 1991-92 and Rs 11.9 cr for 1992-93.

The assessment reports dispatched to the party states that one reason why the 13A exemption has been withdrawn is that the party could not furnish quot;authentic or verifiablequot; detailed accounts even for the eight State units for which it had submitted reports from auditors. This was also the case in Orissa, where the party got donations worth Rs 18 crore in five years. The JD had earlier sent the department a letter stating, quot;after the death of Biju Patnaik the entire unit at Orissa has been in a mess.quot;

The assessment report also states that the party has shown little income from membership fees and other collections. It reads, quot;The Janata Dal is one of the parties which was seen as an alternative to the Indian National Congress and has a presence in most of thenook and corners of India. Therefore it shall be natural to conclude that the primary membership of this party shall be very large8230;quot;

The JD auditor, Ashok Gandhi, says the party will now be filing an appeal to challenge the huge I-T demand. quot;The party has faced splits and and flux in so many States and accounting has been a real problem for us. As far as paying up the Rs 32 crore is concerned, everyone knows the Janata Dal does not have this kind of money,quot; he says.