NEW DELHI, Mar 29: The Communist Party of India (CPI) has received a notice from the Income-Tax Department, asking it explain why penalty should not be imposed on it for using an old PAN card while filing tax returns during the last few years, sources said on Friday.
They said the Left party is consulting its lawyers to challenge the notice of the tax authorities.
The sources said notice mentions that in case it fails to explain its position to the I-T department, penalties along with interest due to authorities for “discrepancies” in the use of an old PAN card by the party would be levied.
Earlier a leader said the notice was for Rs 11 crore but later said it did not mention the amount.
“We are seeking legal assistance and consulting our lawyers,” a senior CPI leader said.
The I-T department has also withdrawn the tax exemption of the Communist Party of India (Marxist) for the year 2016-17 and taxed the Left party Rs 15.59 crore for not declaring a bank account in its tax returns for the year.
The sources said the CPI(M) had received a notice under Section 148A of the Income Tax Act for assessment year 2016-17 on the ground that it was maintaining a bank account but had not declared it in column 13(b) when it filed its tax returns.
However, the department passed an order under section 148A(d) of Act, rejecting the party’s submission, and reopened the case by issuing a notice under section 148. (PTI)
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