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Sep 12, 2011 at 07:32pm IST

Donation to JMM to save Rao Govt tax free: I-T tribunal

New Delhi: An Income Tax Appellate Tribunal has said that the four Jharkhand Mukti Morcha MPs don't have to pay tax on donations received from the Congress for the 1993 confidence vote.

The JMM MPs had appealed against paying income tax on the interest accrued on donations.

The JMM MPs told the tribunal that this is a donation from a big party to a small party for development of Jharkhand and so there can't be any tax payment.

The MPs admitted that the money was paid to them to save the PV Narasimha Rao Government in 1993.

In July 1993, four Jharkhand Mukti Morcha (JMM) MPs along with seven members of a breakaway faction of the Janata Dal(A) were allegedly paid at least Rs 8.7 crore to ensure the survival of the Narasimha Rao Government.

The Supreme Court in 1998 held that the MPs who cast their votes accordingly committed no crime that the legal system can act on.