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No tax relief, Delhi HC dismisses Cong's plea against recovery of ₹105 crore
The Delhi high court refused to interfere with the income tax tribunal order which dismissed Congress's appeal seeking a stay on income tax department notice.
In another blow to the Congress, the Delhi high court on Wednesday dismissed the party's plea seeking a stay on the income tax demand notice for the recovery of ₹105 crore outstanding tax from the party. The Congress moved the high court challenging the order passed by the Income Tax Appellate Tribunal in March refusing to stay the demand notice issued for the recovery of the outstanding tax. “Accordingly we find no ground to interfere in the order impugned,” a high court bench led by Justice Yashwant Varma said.
The Congress approached the high court after the ITAT on March 8 dismissed the party's application seeking a stay on the February 13 notice of the I-T department initiating recovery proceedings against it.
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.
In February, the income tax department seized the party's four main bank accounts on an income tax demand of ₹210 crore for 2018-19. The party approached the tribunal seeking a stay on the action of the income tax department and said the party won't be able to pay bills and salaries if their accounts were frozen. Pending the hearing and the verdict in the case, the income tax department mandated banks to transfer over ₹65 crore from Congress, IYC and NSUI accounts to the government, Congress treasurer Ajay Maken alleged on February 21.
Tax officials say the case pertains to the Congress’s tax dues for assessment year (AY) 2018-19. The initial due to the tax department was Rs103 crore, and ₹32 crore was added to this on account of interest. The tax due was reassessed at ₹105 crore on July 6, 2021.
After this, the Congress appealed before the Commissioner, Appeals but did not pay the mandatory 20% of the tax due to initiate the appeal. It paid only ₹78 lakh, prompting the commissioner to dismiss the plea. The Congress appealed again in May 2023, and in October, paid ₹1.72 crore.
