Probe AAP funding: Election Commission writes to MHA

The Election Commission (EC) has written to the Ministry of Home Affairs (MHA), seeking a probe into the "irregularities in funding to Aam Aadmi Party (AAP)", after the Income-Tax (I-T) Department wrote to the election body, highlighting discrepancies in the process.

A senior EC officer told DNA: "We are not an investigating body. We have forwarded the matter to the MHA for a probe into the irregularities highlighted by the I-T Department." The officer further said that now the ministry will decide whether it will refer the matter to the Enforcement Directorate (ED).

Meanwhile, AAP refrained from commenting on the issue. Party spokesperson Rajhav Chadda said: "We are not aware of the development in the matter." Other leaders, including Dilip Pandey, Ashutosh, and Gopal Rai, did not respond to DNA queries.

The EC came to know about the alleged discrepancies and irregularities following an I-T audit report on AAP funding, released earlier this month. The I-T Department had even recommended that AAP be de-recognised as a party.

Writing to the Commission, the I-T department had stated that the party submitted a "wrong" audit report, and, therefore, was not eligible for exemption under the I-T Act.

As per documents accessed by DNA , the I-T Department stated: "AAP is liable for prosecution under Sections 276 C (wilful attempt to evade tax, etc) and 277A (falsification of books of account or document, etc) of the I-T Act."

The department also pointed out that the income of AAP may be subjected to a special audit under Section 142 (2A) of the Act. Besides, summons were issued to AAP and its present and former treasurers on many occasions, but all of them were reluctant to attend the proceedings.

AAP filed its I-T return for assessment for 2014-15 and 2015-16 financial years, wherein the party had claimed that the entire donation was exempt from taxation under Section 13(A) of the I-T Act. The Directorate of I-T Investigations also received information that the conditions mandated by Section 13(A) were not being followed by AAP.

Also, the original list of contributors submitted by AAP had 177 names that were not mentioned in the revised list. The revised list had 874 names that were not there in the original list.

...& ANALYSIS

• The Directorate of I-T Investigations also received information that conditions mandated by Section 13(A) were not being followed by AAP.
   
• The original list of contributors submitted by AAP had 177 names not mentioned in the revised list. The revised list had 874 names not in the original.