Unrest Between Indian National Congress and Income Tax Department Over Tax Dues
The Income Tax Appellate Tribunal recently reserved its order on the plea by the Indian National Congress seeking a stay against the Income Tax Department’s proceedings of recovery and freezing of the party’s bank accounts. This decision comes in the midst of a heated dispute over outstanding tax dues, with the Congress expressing strong opposition to what they perceive as undemocratic actions by the IT Department.
The IT Department had recovered a substantial amount from the accounts of the Indian National Congress, contributing to the total outstanding tax dues. The Congress, in response, has vehemently criticized these measures, labeling them as undemocratic, particularly as the case pertaining to their return for previous years is still sub judice.
The conflict intensified when the IT Department issued a notice to four bankers of 11 branches of AICC, Youth Congress, and NSUI. The subsequent freezing of the Congress’ main bank accounts had a significant impact on the party’s operations. However, a temporary reprieve was granted by the I-T Appellate Tribunal, allowing the accounts to operate pending a further hearing.
The Congress took its grievances to the Income Tax Appellate Tribunal, filing a complaint against the tax recovery and firmly requesting a stay on further proceedings until the disposal of the stay application. They emphasized the potential detrimental impact on their financial standing, particularly in the lead-up to the 2024 Lok Sabha Elections.
Notably, the IT Department countered these assertions, maintaining that the actions taken were standard recovery proceedings and not linked to any political motives. Furthermore, they accused the Congress of evading payment of Income Tax dues over several years.
The situation escalated further as the Congress accused the BJP-led Centre of engaging in “financial terrorism” and orchestrating an economic assault to weaken the party in advance of the upcoming elections. These allegations were accompanied by strong sentiments towards the ruling party’s conduct, with claims that it posed a threat to democracy.
The ongoing dispute between the Indian National Congress and the Income Tax Department underscores the significant tensions surrounding tax dues, financial accountability, and political implications. As the situation continues to unfold, it remains a focal point of contention within the Indian political landscape.
Income Tax Appellate Tribunal reserved order on the plea by Congress seeking a stay against I-T Department’s proceedings of recovery and freezing of the grand old party’s bank accounts. The Income Tax Department had recovered ₹65 crore from the accounts of the Indian National Congress out of the total outstanding tax dues of ₹115 crore. The Congress had called the act “undemocratic” even when the case pertaining to their return for previous years is sub judice.
On February 14 the IT Department issued a notice to four bankers of 11 branches of AICC, Youth Congress and NSUI. The Congress’ main bank accounts were frozen on Friday over an Income Tax demand of ₹210 crore but an I-T appellate tribunal later allowed it to operate them pending a further hearing next week, a huge relief for the party which said the move had impacted all political activity.