On Wednesday, the Delhi High Court reserved its order regarding Congress’s challenge against the Income Tax department’s re-assessment proceedings initiated on March 7. Earlier in the day, the party presented its case before a bench comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora. The court is expected to deliver its verdict on Thursday or Friday.
In February, the Income Tax department seized four of Congress’s main bank accounts over a ₹210 crore tax demand for the fiscal year 2018-19. Seeking a stay on the action, Congress approached the Income Tax Appellate Tribunal, citing the potential financial strain on its ability to meet obligations like bills and salaries.
Despite the plea, the tribunal dismissed Congress’s application. Subsequently, Congress appealed to the Delhi High Court on March 8, challenging the tribunal’s decision. The assessing officer had raised a tax demand exceeding ₹100 crore for the assessment year 2018-19, with income assessed at over ₹199 crore.
Earlier, the High Court declined to intervene with the tribunal’s decision not to stay the IT department’s notice for recovering outstanding taxes exceeding ₹100 crore from Congress. According to the IT department, the case pertains to Congress’s tax liabilities for the assessment year 2018-19, re-assessed at ₹105 crore on July 6, 2021. Despite appeals to the Commissioner of Appeals, Congress reportedly failed to pay the mandatory 20% of the tax due initially. Subsequently, it approached the Appeals again in May 2023 and October.
Congress has accused the BJP-led government of engaging in “financial terrorism” by re-assessing its taxes, alleging political motives behind the move. It further claimed that the government seized over ₹65 crore from its accounts to “cripple” the party economically ahead of the Lok Sabha elections.
The legal battle underscores broader tensions between political parties and tax authorities, raising questions about the fairness and transparency of tax assessments in the country.
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