New Delhi: The recent back-and-forth between the Congress party and the Income Tax department regarding tax notices and reassessment proceedings has escalated into a contentious debate over alleged financial improprieties and tax compliance.
While the Congress has accused the government agency of engaging in “tax terrorism” and targeting the party, NDTV quotes sources within the Income Tax department who vehemently refuted the claims, asserting that the assessment proceedings are based on concrete evidence and legal grounds.
According to sources in the Income Tax department, the ongoing assessment proceedings were initiated due to the discovery of incriminating material during income tax searches conducted in April 2019.
These searches allegedly revealed cash receipts by the Congress party from various sources, including Megha Engineering, a significant donor in the electoral bonds scheme, the NDTV reported. The total cash receipts, amounting to Rs 626 crore between 2013-14 and April 2019, raised suspicions of potential financial irregularities and corruption.
Under Section 13A of the Income Tax Act, political parties are exempt from taxation on their income if certain conditions are met, including limitations on accepting cash donations exceeding Rs 2,000.
However, the Income Tax department claims that the Congress party violated these conditions, rendering its entire income liable to taxation.
The Income Tax department asserts that it has presented detailed and corroborated evidence, including documents obtained during searches, WhatsApp messages and recorded statements, to support its case in court. Despite the Congress party’s claims of innocence and accusations of harassment, the department maintains that its actions are justified and based on factual findings.
The recent dismissal of four petitions filed by the Congress against income tax reassessment proceedings by the Delhi High Court further underscores the legal legitimacy of the Income Tax department’s actions.
As the contentious issue continues to unfold, both sides are locked in a battle of allegations and counterclaims, with the public eagerly awaiting further developments and transparency in the assessment process.
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