The plea said that the CBDT should be directed to initiate appropriate proceedings for the levy of tax, penalty and prosecution for failure to comply with the requirements of Section 13A of the Income Tax Act read with Section 29C of the Representation of the People Act, 1951.

Section 29C of the Representation of the People Act deals with the declaration of donations received by political parties.

The plea claimed the cause of action arose when the political parties filed their contribution reports and audit reports in September and November 2024 and in August 2025, giving "incomplete details" in their reports.

"The injury to the public is the violation of the fundamental right to information of the voter, as guaranteed under Article 19(1)(a) of the Constitution.

This violation is primarily caused by section 13A(d) of the Income Tax Act, 1961, which allows political parties to receive anonymous cash donations below Rs 2,000," the plea said.

It said this lack of transparency deprives voters of the crucial knowledge about the donors and their motives, preventing them from making an informed decision while casting their vote.

"Ultimately, this undermines the purity of the election process and compromises the integrity and accountability of a healthy democracy by allowing the potential influence of undisclosed or tainted money," the plea said.

It said that with the phenomenal increase in digital payments in India, the bulk of transactions are done through UPI.

"Thus, with the advent of UPI revolution in the country, permitting exemption of income received by way of contribution in cash below Rs 2,000 under section 13A(d) of the Income Tax Act, 1961, can no more be justified and is manifestly arbitrary and has no nexus to the object of maintaining transparency in the funding of political parties," it said.

The plea also referred to the apex court's 2024 judgement, which struck down the electoral bonds scheme.

The scheme, which was notified by the government on January 2, 2018, was pitched as an alternative to cash donations made to political parties as part of efforts to bring in transparency in political funding.