The Income Tax Appellate Tribunal on Friday dismissed the party’s plea seeking a stay against the income tax department’s action against Congress’s bank account.
Appearing for the Congress, Advocate Vivek Tankha requested the tribunal to defer the order for 10 days so that the party can approach the high court but the tribunal bench declined it and said there was no such provision.
The income tax department in February seized the party’s four main bank accounts on an income tax demand of Rs 210 crore for 2018-19. The Congress 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.
Reserving the hearing and the verdict in the case, the income tax department mandated banks to transfer more than Rs 65 crore from Congress, IYC and NSUI accounts to the government, Congress treasurer Ajay Maken alleged on February 21.
The Congress treasurer asked if it is common for National Political Parties to pay Income Tax. He further questioned if the BJP pays Income Tax. Asserting no, he asked why the Congress party is facing an unprecedented demand of Rs 210 crores?
Notably, the allegation against Congress is that the party did not pay its income tax dues for the financial year 2017-18, the assessment year 2018-19. Furthermore, the initial dues were Rs 103 crore and Rs 32 crore in interest accrued on late payment.
Later, the dues were reassessed at Rs 105 crore on July 6, 2021. Subsequently, the Congress then appealed before Commissioner Appeals but did not pay the mandatory 20% of the tax. As the case moved further, the party made some payments but did not dispute the tax-due amount.
Meanwhile, the Congress had called the tax demand politically motivated and said that it was timed to disrupt the party’s election preparations. The Congress had also accused the BJP government of financial terrorism and an attempt to cripple its primary opposition before the elections.