Income Tax department on Friday claimed to have found that audit reports prepared by the Aam Aadmi Party (AAP) for donations amounting to about Rs 27 crore are incorrect.
In a report submitted to the Election Commission, the department, which has been investigating the donations list of the party for the last over an year, has said that the records of donations made to the AAP during 2013-14 and 2014-15 had factual discrepancies and did not match with the actual funds received by it from various donors.
Parties prepare audit reports, in consultation with their charted accountants, and submit a copy to the I-T department as per law.
Officials said the alleged discrepancies in the donation records of party are of about Rs 27 crore and has added that the treasurer of the party has acknowledged certain errors in these records in their communication with the taxman.
The I-T report, they said, has suggested that the violations are in contravention of tax laws that govern political donations as stipulated under the Income Tax Act, 1961.
They said this could form the basis for the cancellation of the tax exemptions given under the I-T Act to AAP and could also follow a stringent action of de-registration of the party, but all such decisions are the domain of the Election.