The notice issued by the Income Tax department to the Congress, imposing a staggering Rs 1,823 crore for the assessment years 2017-’18 to 2020-’21, drew condemnation from the party, accusing the ruling BJP government of resorting to 'tax terrorism' ahead of the upcoming Lok Sabha polls.
The Income Tax department also issued a notice to The Communist Party of India (CPI) asking it to pay "dues" of Rs 11 crore for using an old PAN card while filing tax returns during the last few years.
Reacting to the notice, senior Congress leaders condemned the move, with Jairam Ramesh accusing the Bharatiya Janata Party (BJP) of resorting to "tax terrorism" ahead of the upcoming Lok Sabha polls. Ramesh alleged that the BJP's strategy aims to financially cripple opposition parties, particularly targeting the Congress.
This development comes hot on the heels of the Delhi High Court's dismissal of the party's petitions challenging the tax reassessment proceedings. The notice includes penalties and interest, adding to the financial woes of the opposition party.
Congress Treasurer Ajay Maken highlighted discrepancies in BJP's funding, pointing out a lack of details regarding a substantial amount received in 2017-’18. Maken argued that this violated the Representation of the People Act and demanded the Income Tax Department pursue a demand of over Rs 4,600 crore, inclusive of interest for the past seven years.
In response to the notice, Congress announced its intent to challenge the decision in the Supreme Court early next week. This move follows previous legal battles with the Income Tax Department, including the freezing of party bank accounts over alleged tax demands.
The Delhi High Court's rejection of Congress' petitions further exacerbated the situation. The bench, comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav, upheld the Income Tax Department's reassessment proceedings, citing substantial evidence necessitating further scrutiny under the Income Tax Act.
Meanwhile, CPI said it is consulting its lawyers to challenge the notice of the tax authorities.
The sources said the "dues" to be paid to the I-T department include penalties and interest due to authorities for "discrepancies" in the use of an old PAN card by the party.
"We are seeking legal assistance and consulting our lawyers," a senior CPI leader told PTI.
Earlier, the Congress said it has received I-T notices, asking the party to pay dues of more than Rs 1,823 crore for discrepancies in tax returns filed for previous years.