Electoral Bonds Case Hearing : Live Updates From Supreme Court [Day 2]

Hansaria: Then it says name and address of the person who donated should be provided. This was changed in 2003.

Hansaria: Look at this- "provided that such political party keeps and maintains books of accounts and other documents as to enable the Income Tax officer to properly deduce his income therefrom."

Hansaria: The exemption was provided to address the issue that such taxation reduces disposable income affecting their financing.

Hansaria: Now Section 13A was introduced in the Income Tax Act in 1978 whereby the income of a political party received by contribution was exempted.

Hansaria: Now see similar changes in the Income Tax Act. Please see the evolution of the Income Tax Act.

CJI: So it's not a question of what a legislature enacts. It can take that away. But when you're making an enabling provision for contributions and taking away the restraints of a company - that taking away of restraints is amendable to be tested under Art 14.

CJI: So if constraints subject to which those contributions are permissible are lifted by the legislature, they are amenable to be tested under Art 14

CJI: Then comes the ban on 1969. Ban is lifted in 1985. So though it is a matter of statutory regulation, absent an enabling provision, a company cannot contribute to a political party.

CJI: The 1956 Act for the first time, when that enabling provision came, provided this. In fact there was initially a complete ban. 1960 was 5% of net profits or 20,000 rs. Absent that provision you couldn't have contributed at all

CJI: Suppose there was no provision for political contributions in 1956 Act, what would be the consequence? Consequence is not that companies are free to donate for political purposes untrammelled by any other provisions.