Today (16 Feb 2024), the Income Tax Appellate Tribunal (ITAT) provided temporary relief to the Congress party, permitting it to access its blocked bank accounts while being subject to a lien imposed by the Income Tax (IT) Department. During a press conference, the Congress revealed that its accounts had been frozen by the IT Department.
Thank you for reading this post, don't forget to subscribe!
NEW DELHI: The Income Tax Appellate Tribunal (ITAT) has provided interim relief to the Indian National Congress, allowing the party to operate its previously frozen bank accounts, albeit with certain restrictions imposed by the Income Tax Department. This decision, articulated by a bench comprising Vice President GS Pannu and Judicial Member Abhinav Sharma, marks a pivotal moment in the ongoing financial scrutiny faced by one of India’s primary political entities.
The backdrop of this legal drama was set when the Congress party, through a press conference, disclosed that the Income Tax Department had frozen its bank accounts. Ajay Maken, the treasurer of the Congress, characterized this move as an assault on democracy, especially with the looming parliamentary elections in India. He articulated the party’s stance, stating:
“the freezing of the party’s bank accounts as freezing of democracy ahead of the parliament elections in India.”
The controversy centers around a substantial sum of Rs 210 crore, which, according to the Congress, was amassed through donations from party workers, rather than corporate interests. This financial blockade not only targeted the main party accounts but also extended to the Youth Congress, significantly hampering their operational capabilities.
In response to this unprecedented action, Congress Member of Parliament (MP) and Senior Advocate Vivek Tankha took to X (formerly Twitter) to announce his representation of the party before the ITAT’s Delhi bench. His advocacy aimed to challenge the account freeze and seek judicial relief. Tankha’s efforts bore fruit as the tribunal acknowledged the party’s compliance with tax return filings and recognized the disproportionate nature of the punitive measure imposed by the IT Department.
Vivek Tankha shared insights from the courtroom, revealing his argumentative stance to the tribunal,
“The Court heard me for some time. I said we have a very good case on facts. We have filed our returns on time; it is being misconstrued and only for that reason we can’t be punished disproportionately. Very graciously, the ITAT has said that there will only be a lien on the bank account. There is no restriction on the bank account, you can operate,”
-showcasing the tribunal’s decision to impose a lien rather than continue with the complete freezing of the accounts.
This judicial decision allows the Congress party a semblance of operational normalcy, granting them access to their funds while still under the watchful eye of the Income Tax Department. The imposition of a lien, rather than an outright freeze, suggests a nuanced approach by the ITAT, balancing the need for fiscal accountability with the practicalities of political party financing.
ALSO READ: SUPREME COURT Confirms Bail for Congress MLA Sukhpal Singh Khaira in Narcotics Case
As the Congress party navigates through this challenging financial scrutiny, the ITAT’s order represents a crucial juncture. It underscores the intricate balance between regulatory oversight and the operational freedoms of political entities, a theme that is likely to resonate beyond the immediate context of this case. The unfolding narrative will undoubtedly be watched closely, not just by political analysts but also by legal experts and the public, as it unfolds against the backdrop of India’s vibrant democratic landscape.
FOLLOW US ON YOUTUBE FOR MORE LEGAL UPDATES
