The Delhi High Court on Wednesday upheld ITAT order refusing to stay the Income Tax Department’s notice to the Congress for recovery of outstanding tax of over Rs 100 crore.
Earlier, the Congress had approached the Delhi HC against an order issued by the Income Tax Appellate Tribunal (ITAT) refusing to stay a demand notice issued by the IT department asking the party to clear the outstanding tax of over Rs 100 crore. The party’s counsel had argued that the party’s accounts have been frozen and their stay application was rejected by the ITAT.
“This is the peak time for elections. If we do not have the money, how will we fight? ITAT had protected us but now that is gone,” Congress’ counsel Vivek Tankha was reportedly quoted as having told the bench.
ITAT in its order on March 8, 2024 had said that the IT authorities had not made any error in denying the income tax exemption claimed by the Congress. It further said that Congress was unable to make out a strong prima facie case against such a denial of exemption by the IT authorities.
The Congress party’s declaration of nil income was rejected by the IT authorities in July 2021 and a demand of over Rs 105 crores as tax was slapped upon them for the 2018-2019 Assessment Year.
The demand was raised on the grounds that the return had been filed beyond the prescribed time period and also that the party received “donations” of Rs 14,49,000 from various persons, each being in excess of Rs 2,000 and in violation of Section 13A of the Income Tax Act.
In February this year, the Congress stoked controversy when it claimed that its bank accounts were frozen by the IT department and that the cheques it had issued were not being honoured.
The party moved ITAT alleging that the recovery proceedings initiated on February 13 were deliberately aimed at creating hardships to the party in view of the upcoming Lok Sabha elections.
