On March 13, 2024, the Delhi High Court dismissed a plea by the Indian National Congress challenging the Income Tax Appellate Tribunal’s decision not to stay the Income Tax department’s lien on their bank accounts.
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DELHI: The Delhi High Court on March 13, 2024, delivered a verdict that has caught the attention of political and legal circles across India. The court dismissed a plea by the Indian National Congress challenging the decision made by the Income Tax Appellate Tribunal (ITAT). The tribunal had earlier dismissed the political party’s request for a stay on the Income Tax department’s lien on their bank accounts.
The court’s decision came after careful consideration of the facts and arguments presented. It noted, “The court found no reason to interfere in the ITAT order,” thereby affirming the tribunal’s decision. However, the court also granted the Congress party the liberty to approach the appellate tribunal if there is a change in circumstances, indicating a sliver of hope for the party if future developments justify a reassessment of the case.
The backdrop of this legal battle is filled with significant financial figures and legal maneuvers. During the hearing on March 12, the IT department confirmed the recovery of Rs 65 crore from the Congress party’s bank accounts against a demand of Rs 135 crore. This recovery is part of the department’s ongoing efforts to enforce tax compliance and recover outstanding amounts.
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The notable turn on March 8, when the court dismissed Congress’s plea seeking to prevent the IT lien on their bank accounts. Following this decision, senior counsel Vivek Tankha, representing the Congress, made a poignant appeal to the ITAT.
Tankha argued:
“Since you have dismissed the stay application, which has far-reaching consequences for the party, can I request the court to keep the order in abeyance for 10 days so that I can go to the high court?”
This plea highlighted the party’s urgent need for relief to prevent immediate financial strain and maintain its operational capabilities.
However, the appellate tribunal was unmoved by the plea, stating that they are “not empowered to pass such orders.” This response was grounded in the tribunal’s observation that the Congress party had not demonstrated sufficient urgency or commitment to resolving the appeal, as evidenced by their history of adjournments since September 2023. The ITAT’s order pointed out the party’s lack of diligence, noting that the assessing officer of the department had initially raised a demand of Rs 105 crore in July 2021, which the party had been contesting without resolution.
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The situation escalated when, on February 13, the IT department decided to proceed with the recovery of demands pending for over two years. In response, the Congress filed a stay application and sought an urgent hearing. However, the tribunal’s order dismissed the party’s concerns, stating that the recovery action was not taken in undue haste, thereby rejecting the notion that the party was unfairly targeted or rushed into compliance.