The Income Tax Appellate Tribunal (ITAT) today (on February 8) has dismissed a plea by the Indian National Congress (INC) seeking a stay on the Income Tax Department’s actions regarding their bank accounts. This decision comes amidst a contentious legal battle between the Congress party and the IT Department over tax claims for the assessment year 2018-19.
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The Congress had initially been slapped with a tax claim of Rs 103 crores, which was subsequently revised to Rs 105 crores. However, the situation escalated when an additional Rs 30 crores were added as interest, bringing the total claim to a staggering Rs 135 crores. In response to these developments, the Congress approached the ITAT on Wednesday, alleging that the tax department had “undemocratically” withdrawn a sum of Rs 65 crore from its accounts across various banks.
This financial tug-of-war took a significant turn on February 16 when the main bank accounts of the Congress were frozen, a move that was later countered by the ITAT allowing the party to operate its bank accounts pending further hearings. Despite this temporary relief, the Congress sought a more permanent solution from the ITAT, arguing against the tax department’s actions.
The plea put forth by the Congress was not just a legal argument but also a political statement.
“I am a 100-year-old party filing my returns regularly… To do this on the eve of elections is to make sure I don’t participate in the festival of democracy…We are being choked,”
stated the advocate representing the Congress, highlighting the timing of the tax department’s actions as a significant concern, especially with the general elections on the horizon.
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However, the tax department countered these allegations, suggesting that the Congress was attempting to “create a false narrative that they are being targeted ahead of the general elections.” This back-and-forth between the two entities underscores the complex interplay between politics, finance, and law.
Despite the Congress’s plea for a 10-day stay on the order to approach the High Court, the ITAT bench declined the request, leaving the party in a precarious financial position as it navigates the legal and political ramifications of this decision.
This case is not just a matter of financial dispute but also raises questions about the timing and implications of such legal actions in the politically charged atmosphere of an election year. As the Congress grapples with these challenges, the outcome of this legal battle will be closely watched for its potential impact on the political landscape and the principles of democratic participation in India.
