Income Tax tribunal dismisses Congress’s plea to stop action against bank accounts

In a major setback to the Congress ahead of the 2024 Lok Sabha election, the Income Tax Tribunal on Friday dismissed the party’s plea seeking a stay against.

The income tax department’s action against Congress’s bank accounts. Advocate Vivek Tankha appeared for the Congress and requested the tribunal to defer the order for 10 days so that the party can approach the high court but the tribunal bench declined it and said there was no such provision.

In February, the income tax department seized the party’s four main bank accounts on an income tax demand of ₹210 crore for 2018-19. The party approached the tribunal seeking a stay on the action of the income tax department and said the party won’t be able to pay bills and salaries if their accounts were frozen. Pending the hearing and the verdict in the case, the income tax department mandated banks to transfer over ₹65 crore from Congress, IYC and NSUI accounts to the government, Congress treasurer Ajay Maken alleged on February 21.

“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.

What is the income tax case against Congress?
The allegation against Congress is that the party did not pay its income tax dues for the financial year 2017-18, the assessment year 2018-19. The initial dues were ₹103 crore and ₹32 crore in interest accrued on late payment. The dues were reassessed at ₹105 crore on July 6, 2021. The Congress then appealed before Commissioner Appeals but did not pay the mandatory 20% of the tax. As the case dragged on, the party made some payments but did not dispute the tax-due amount, income tax department sources said.

Reacting to the tribunal verdict, Ajay Maken said it is an attack on democracy as it has come before the national elections. The party will explore legal options on the tribunal order and will move the high court against it, Maken said. Vivek Tankha said the tribunal did not follow its past precedents in its ‘disappointing’ order.