Court rejects Congress’s request to halt the IT Department’s action regarding bank accounts

The Income Tax Appellate Tribunal on Friday rejected the Congress party’s request for a halt of the Income Tax Department’s actions against its bank accounts ahead of the Lok Sabha elections in 2024, dealing the party a serious blow.

On behalf of the party, advocate and Congress MP Vivek Tankha asked the tribunal to postpone the ruling for ten days so that the party may file an appeal with the high court. However, the tribunal bench rejected the appeal, stating that no such provision existed.

The party’s four primary bank accounts were blocked by the I-T Department earlier in February, and they demanded a recovery of Rs 210 crore for 2018–19. The party subsequently went to the tribunal to request a stay of the I-T Department’s action, arguing that if their accounts were blocked, they would not be able to pay their expenses or wages.

According to Congress treasurer Ajay Maken, on February 21, the I-T Department ordered banks to transfer about Rs 65 crore from the accounts of the Congress, Indian Youth Congress (IYC), and NSUI (National Students Union of India) to the government, pending the hearing and decision in the matter.

The Congress is accused by the I-T Department of failing to pay its income tax obligations for the assessment year 2018–19 and the financial year 2017–18. The original amount owed was Rs 103 crore, with interest of Rs 32 crore for late payments. On July 6, 2021, a reassessment of the debt revealed Rs 105 crore.

After then, the Congress filed an appeal with the Commissioner of Appeals, however it is said that they neglected to provide the required 20% of the tax payment. Congress party treasurer Ajay Maken responded to the tribunal’s decision by calling it an assault on democracy since it was made just before the presidential elections. In addition to petitioning the high court to overturn the tribunal ruling, the party will investigate its legal alternatives.

Addendum made. “At this point, our cherished democracy is only rescued by the people. According to Vivek Tankha, “the Congress is fighting the system and elections together.”