New Delhi: The Delhi High Court on Wednesday upheld a ruling by the Income Tax Appellate Tribunal (ITAT) that declined to halt the Income Tax department’s move to recover outstanding tax payments of over Rs 105 crore from the Indian National Congress.
A bench comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav affirmed the ITAT’s decision on March 8, asserting that there was no grounds for intervention. However, the Congress was granted the liberty to file a fresh appeal before the Appellate Tribunal.
As per the I-T department’s counsel’s statement in court, the total amount owed, including accrued interest, now stands at nearly Rs 135 crore.
The High Court Bench criticised the handling of the case against the Congress, noting that the proceedings initiated in 2021 were mismanaged, the Bar and Bench reported. The Bench remarked that the Congress itself bears responsibility for the situation, suggesting negligence within the party’s administration.
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The Congress approached the court after the ITAT rejected its plea for a stay on the I-T department’s February 13 notice to initiate recovery proceedings, citing a tax demand exceeding Rs 105 crore for the assessment year 2018-19.
During the hearing, the Congress’s legal representative appealed for protective measures, expressing concerns over the potential repercussions on the party’s stability.
The I-T department’s counsel disclosed to the court that a portion of the tax demand, amounting to Rs 65.94 crore, has already been recovered. The original tax demand of Rs 102 crore was augmented by interest, resulting in the current figure of Rs 135.06 crore.
The ITAT, in dismissing the stay application, asserted that there were no apparent grounds to question the bona fides of the recovery notice issued by the assessing officer on February 13, 2024.
Earlier, the Congress had decried the freezing of its funds by the IT tribunal as an assault on democracy, particularly given its proximity to the 2024 Lok Sabha elections.
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