The Delhi high court on Wednesday reserved its judgment on Congress's plea challenging the Income Tax department's order initiating re-assessment proceedings against the grand old party for three years - 2014 to 2015, 2015 to 2016, and 2016 to 2017. A bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav is likely to pronounce the order on Thursday or Friday.
Earlier in the day, the grand old party also moved the Delhi high court challenging the IT department's March 7 order of initiating re-assessment proceedings of four years. The matter was mentioned before a bench of Acting Chief Justice Manmohan and Justice Manmeet PS Arora.
In February this year, the IT department seized Congress' four main bank accounts on an income tax demand of ₹210 crore for 2018-19. The grand old party approached the Income Tax Appellate Tribunal seeking a stay on the action of the IT department, saying that they would not be able to “pay bills and salaries if their accounts were frozen”.
According to the counsel for Congress, the recovery proceedings under section 226 (3) of the IT act were “so timed” that the party would not be left with enough resources to contest the parliamentary elections.
However, the tribunal dismissed the grand old party's application.
Also read: BJP files code of conduct violation complaint against Congress in Himachal
{{/usCountry}}However, the tribunal dismissed the grand old party's application.
Also read: BJP files code of conduct violation complaint against Congress in Himachal
{{/usCountry}}Following this, the Congress approached the Delhi high court challenging the tribunal's order on March 8. The assessing officer had raised a tax demand of more than ₹100 crore for the assessment year 2018-19 when the income was assessed to be more than ₹199 crore.
Last week, the high court refused to interfere with the order of the tribunal declining to stay a notice issued by the IT department to the Congress for recovery of outstanding tax of more than ₹100 crore from the party.
What is I-T dept saying?
According to the I-T department, the case pertains to the Congress’s tax dues for assessment year (AY) 2018-19. The party's tax due was reassessed at ₹105 crore on July 6, 2021.
Initially, while the Congress appealed before the Commissioner of Appeals, it reportedly did not pay the mandatory 20% of the tax due to initiate the appeal. The party then approached the Appeals again in May 2023 and then in October.
The Congress has accused the BJP-led central government of “indulging in financial terrorism” against it over the tax re-assessment proceedings. It also alleged that the ruling government “looted” over ₹65 crore of its accounts to “economically cripple” the party ahead of Lok Sabha polls.
(With inputs from agencies)