Delhi High Court rejects Congress's tax reassessment appeal
The Delhi High Court (HC) on Friday dismissed the appeal lodged by the Congress contesting the tax reassessment proceedings initiated by the Income Tax (I-T) Department. According to reports, the judgment was handed down by a bench consisting of Justices Yashwant Varma and Purushaindra Kumar Kaurav. The court had previously postponed its decision on these appeals, which relate to tax reassessment for three successive years: 2014-15, 2015-16, and 2016-17.
Why does this story matter?
This development comes a day after former Congress President Sonia Gandhi launched a scathing attack on Prime Minister Narendra Modi, accusing him of a "systematic effort to cripple Congress financially" ahead of 2024 Lok Sabha elections. Gandhi's statement referred to the party's claim last month that the Income Tax Department froze Rs. 115 crore in its bank accounts following a tax demand of Rs. 210 crore as dues and penalty for 2018-19 financial year.
Congress contests tax reassessment proceedings
Senior advocate Abhishek Manu Singhvi, acting on behalf of the Congress party, contended that tax reassessment proceedings are restricted by limitation. He maintained that the I-T department could have revisited a maximum of six fiscal years. However, the I-T department refuted this claim by asserting there was no breach of any statutory provision by the tax authority. They argued that according to their investigations, the income overlooked by the party exceeds Rs. 520 crore.
Report refutes Congress's allegations
Meanwhile, a PTI report has disputed the allegations made by the Congress, indicating that while Rs. 135 crore has been retrieved from the Congress's bank accounts due to purported violations of laws providing political parties tax exemptions, these accounts have not been frozen. The report clarified that the party retains the freedom to manage these accounts beyond the money reclaimed by the I-T department.
BJP accused of hoarding election resources by Congress
On Thursday, Congress President Mallikarjun Kharge also accused the Bharatiya Janata Party of hoarding election resources and attempting to prevent the Congress from contesting in elections by financially attacking it. He stressed that for democracy to work effectively, elections must be conducted fairly. "It shouldn't be that ED (Enforcement Directorate), I-T and other autonomous bodies are controlled. In the last few days...after intervention by SC (Supreme Court), the facts about electoral bonds which have emerged have hurt...the country," Kharge said.
