In a significant setback for the Congress party, the Income Tax Tribunal dealt a blow by dismissing its plea seeking a stay against the income tax department's action on its bank accounts. Advocate Vivek Tankha, representing the Congress, requested a 10-day deferment to approach the high court, but the tribunal bench declined, citing the absence of such provisions.
Seizure of Congress's Bank Accounts
Back in February, the income tax department seized four main bank accounts of the Congress party due to a tax demand of ₹210 crore for the fiscal year 2018-19. The party approached the tribunal seeking relief, emphasizing its inability to pay bills and salaries if its accounts remained frozen.
Mandate for Fund Transfer
Amidst the ongoing legal battle, the income tax department directed banks to transfer over ₹65 crore from Congress, IYC, and NSUI accounts to the government. Congress treasurer Ajay Maken alleged that this move was unprecedented, questioning why national political parties like BJP are exempt from paying income tax.
Allegations of Tax Evasion
The allegations against Congress revolve around its failure to pay income tax dues for the financial year 2017-18. Initially amounting to ₹103 crore with an additional ₹32 crore in accrued interest, the dues were reassessed at ₹105 crore in 2021. Despite appeals and partial payments, the party did not dispute the tax-due amount.
Party's Reaction and Legal Course
Reacting to the tribunal's verdict, Ajay Maken condemned it as an attack on democracy, especially coming just before the national elections. The Congress intends to explore legal options and plans to challenge the tribunal's decision in the high court. Vivek Tankha criticized the tribunal for deviating from its past precedents, labeling the order as 'disappointing.'