Congress leader Vivek Tankha revealed on Friday that the party’s bank accounts, earlier frozen by the Income Tax Appellate Tribunal, have been unfrozen after filing an appeal. The clarification followed the Congress’s announcement that Income Tax authorities had frozen its primary bank accounts, impacting all political activities.
Tankha, who presented the party’s case before the tribunal, stated that the Congress is now allowed to operate its bank accounts. The tribunal is scheduled to revisit the matter next Wednesday for a final decision.
During the tribunal proceedings, Tankha emphasized that the Congress, with its accounts frozen, would be unable to actively participate in the upcoming elections. The statement came after Congress treasurer Ajay Maken criticized the Income Tax department’s move, claiming the freezing of the Congress’ main bank accounts on “flimsy grounds” significantly affected the party’s political activities, especially with general elections just two weeks away.
Maken revealed that the freezing of accounts, which included those of the Indian Youth Congress, was based on an Income Tax demand of ₹210 crore for the 2018-19 fiscal year, an election year. Maken explained that the party’s Income Tax return for that year was filed a few days late, leading to the action. He further noted that the freezing orders were received on Wednesday, affecting four main bank accounts, with some reports suggesting a total of nine accounts being frozen.
According to Maken, even the funds received under the party’s crowdfunding scheme were rendered inaccessible due to the frozen accounts. He expressed concerns about the impact on democracy, stating, “For the first time in the country’s history, accounts of the principal opposition party have been frozen by the tax authorities on flimsy grounds, barely two weeks before the announcement of general elections.”
As the Congress regains control of its bank accounts following the tribunal’s decision, the incident underscores the potential political ramifications of financial actions in the lead-up to elections, prompting discussions about the state of democracy in the country. The unfolding events are likely to fuel debates and discussions on the role of financial regulations and their impact on political participation.
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