In a significant blow to the Congress party ahead of the Lok Sabha elections, the Income Tax Appellate Tribunal (ITAT) has dismissed the party’s appeal against the actions taken by the Income Tax Department regarding its bank accounts. Senior Advocate Vivek Tankha, representing Congress, had requested a 10-day suspension of the order to allow the party to approach the High Court. However, the bench declined the request, stating no such provision had been presented to them.
Sources have revealed that Congress intends to challenge the decision of the tax tribunal by moving to the High Court. The stay application was related to the Income Tax Department’s demand of Rs 210 crore issued in connection with the income tax return for the year 2018-19. Congress alleges that this move is politically motivated and timed to disrupt its election preparations.
Congress Claims Political Motivation Behind Tax Demand
On February 16, Congress leader and treasurer Ajay Maken stated that the Income Tax department had frozen four bank accounts belonging to the party and the Youth Congress. Responding to these claims, the Income Tax department informed the Tribunal that it had not frozen Congress’s bank accounts but had only requested a lien on the amount based on an earlier demand.
Congress leader Vivek Tankha confirmed that the party’s bank accounts were unfrozen by the IT Appellate Tribunal after the party filed an appeal. The issue stems from the late filing of the Income Tax Return for 2018-19 by the Congress, resulting in a demand of ₹103 crore. Delays in payment led to increased interest, exacerbating the financial strain on the party.
Congress Plans High Court Appeal
Despite the setback, Congress remains determined to challenge the decision through legal means. The rejection of their plea by the ITAT has only strengthened their resolve to seek redressal in the High Court. The party views the Income Tax Department’s actions as an attempt to impede its election preparations and undermine its political standing.
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