Congress plea to stop action against bank accounts dismissed by Income Tax tribunal

New Delhi: In a severe defeat for the Congress ahead of the 2024 Lok Sabha election, the Income Tax Tribunal on Friday denied the party's request for a halt on the income tax department's proceedings against Congress bank accounts. Advocate Vivek Tankha argued for the Congress and sought that the order be deferred for 10 days so that the party may appeal to the high court, but the tribunal bench denied it, stating that such a provision did not exist.

In February, the income tax authority confiscated the party's four primary bank accounts due to an income tax claim of ₹210 crore for 2018-19. The party approached the tribunal, requesting a stay on the income tax department's proceedings, claiming that if their accounts were blocked, they would be unable to pay bills and salaries. On February 21, Congress treasurer Ajay Maken alleged that the income tax department ordered banks to transfer over ₹65 crore from Congress, IYC, and NSUI accounts to the government while the hearing and verdict in the case was pending, Hindustan Times reported.

"Is it common for National Political Parties to pay Income Tax? No. Does the BJP pay Income Tax? No. Why then is the Congress Party facing an unprecedented demand of ₹210 crores?" Ajay Maken wrote.

Income tax case against Congress

The charge against Congress is that the party failed to pay its income tax obligations for the fiscal year 2017-18 and the assessment year 2018-19. The initial dues were ₹103 crore, with an additional ₹32 crore in interest due to late payment. Dues were reassessed at ₹105 crore on July 6, 2021. The Congress then filed an appeal with Commissioner Appeals, but did not pay the required 20% of the tax. As the case progressed, the party made some payments but did not contest the amount of tax owed, according to income tax department sources.

Ajay Maken responded to the tribunal verdict, calling it an attack on democracy because it came before the national elections. Maken stated that the party will look into legal options over the tribunal order and may file an appeal in the high court challenging it. According to Vivek Tankha, the tribunal did not follow its past precedents in its 'disappointing' order.