Congress's plea to stay action against its bank accounts dismissed
The Income Tax Appellate Tribunal (ITAT) has rejected the Congress Party's request to stay the Income Tax Department's actions against its bank accounts. Advocate Vivek Tankha appeared for the Congress and requested a 10-day delay so that the party could approach the high court. However, the bench declined the plea. Following the judgment, Congress senior leader Ajay Maken stated that the party is looking into legal alternatives and will file an appeal in the high court.
Why does this story matter?
The charge against Congress is that it failed to pay income tax dues for the assessment year 2018-19. Initial dues were Rs. 103 crore, with Rs. 32 crore in interest for late payment. In 2021, the dues were reassessed at Rs. 105 crore. Congress then appealed to the Commissioner of Appeals but did not pay the mandatory 20% tax. As the case progressed, the party made some payments but didn't contest the amount of tax owed.
Department seized the party's 4 main bank accounts in February
Consequently, on February 16, the department seized the party's four main bank accounts. At the time, the Congress alleged that the department had frozen Rs. 115 crore in its bank accounts following a tax demand of Rs. 210 crore as dues and penalties for the assessment year 2018-19. While there was no official comment from the I-T department regarding its action, reports stated that "it was a routine process against anyone who has not paid income tax dues for years."
Department removed Rs. 65 crore from party's accounts
Days later, Maken claimed that the department had removed Rs. 65 crore from three of the party's accounts, despite the fact that the ITAT was hearing a petition challenging the claim. Calling the action "undemocratic," Maken questioned, "Does the BJP pay Income Tax? No. Why...is the Congress facing...demand of Rs. 210 crores?" Maken said the funds in question were generated through grassroots efforts, including crowd financing and membership drives by the Indian Youth Congress and National Students' Union of India.
