NCP gets I-T notice for Rs 35 crore deposit

Sharad Pawar-led party agrees to furnish details on cash deposits of Rs 35 cr in June to I-T department

The Nationalist Congress Party (NCP) in Maharashtra said on Monday the Income Tax (I-T) department had given it time till June to provide necessary details on cash deposits of Rs 34.75 crore present in its account without depositor details such as PAN number.

NCP on Monday said that the income tax department has already given time in June to provide necessary details with regard to deposits and the movement of funds in its account in the Bank of Maharashtra Nariman Point branch between April 1, 2013-April 21, 2014. I-T department had issued summons in the third week of April to state NCP seeking its clarification.

“A team of partymen, along with our lawyer held a meeting with the I-T department and sought time to provide all the details as the election process was underway. The department has accepted our request and given us time in June. We will give all the necessary details,” the NCP’s state treasurer, Hemant Takle, told Business Standard.

NCP spokesman Nawab Malik said that it is a general practice of the income tax department to seek details from all political parties. ''The party has received contribution from its members towards membership and also donations from the party workers and citizens. All these details will be placed before the income tax authorities,'' he added.

In its reply, NCP's Chartered Accountant firm in Mumbai -- U G Devi and Co -- said that the deposits "represent the collections made by the party from the various district and constituencies in Maharashtra by way of coupons which are in the denominations of Rs 1,000, Rs 500 and Rs 100."

Under current rules, political parties have to furnish vital details of depositors and donors like PAN, bank account number and addresses in case the cash amount is above Rs 20,000.

The inquiry by the income department, official sources said, has been the of the Election Commission (EC) mandated expenditure protocols in view of the ongoing polls.

The I-T raised a query as none of the deposits prima facie reflect the Know Your Customer (KYC) details required for such cash deposits, like Permanent Account Number (PAN) or other banking details of the depositors, sources added.
The total cash deposits during the same period have been found to be at Rs 34.75 crore.