Another Setback For Congress, Income Tax Department Issues Rs 1823 Crore Notice To Party

Responding to the IT notice, the Congress party accused the BJP of squeezing it financially and of using tax authorities against it ahead of Lok Sabha elections beginning April 19

New Delhi: In another setback for the Congress party, amidst the ongoing Lok Sabha election campaign, sources revealed on Friday that the Income Tax Department has served a demand notice amounting to approximately Rs 1823.08 crore. This notice pertains to the assessment years spanning from 2017-18 to 2020-21 and encompasses penalty charges along with accrued interest.

कांग्रेस को आयकर विभाग से एक और झटका, कहा - ये टैक्स टेररिज्म है

कांग्रेस ने शुक्रवार को कहा कि आयकर विभाग ने टैक्स रिटर्न में कथित गड़बड़ियों के लिए 1823.08 करोड़ रुपये के भुगतान का नया नोटिस उसे जारी किया है. पार्टी महासचिव जयराम रमेश ने यह दावा भी किया कि लोकसभा चुनाव से… pic.twitter.com/ZsWYP5863z — Zee News (@ZeeNews) March 29, 2024

Reacting to the notice, the Congress party has accused the BJP of utilizing financial tactics to suppress them, especially as the Lok Sabha elections draw near, slated to commence on April 19. In a press conference today, Congress member Jairam Ramesh labelled the notices as a form of "tax terrorism" orchestrated to weaken the party financially, stressing the need to halt such actions. "The notices are being sent to cripple us financially. This is tax terrorism, and this is being used to attack the Congress, This has to stop," Congress's Jairam Ramesh said in a press conference today. 

#WATCH | Congress leader Ajay Maken says, "We have received notices from the time of Sitaram Kesari, from 1993-94... We have been demanded to pay Rs 53 crores from the time of Sitaram Kesari. A total of Rs 1823 crores has been made by the IT department from Congress." pic.twitter.com/Yas23wj9l7 — ANI (@ANI) March 29, 2024

Earlier this week, the Delhi High Court dismissed the Congress party's plea contesting the initiation of reassessment proceedings by the Income Tax Department for the years 2017-18 to 2020-21. The court upheld its earlier decision rejecting similar pleas by Congress regarding reassessment proceedings for previous years.

Moreover, a recent ruling by the Delhi High Court affirmed the Income Tax Appellate Tribunal's decision not to suspend the Income Tax notice for the recovery of over Rs 105 crore in outstanding taxes from the Congress party. However, the court granted the Congress liberty to approach the appellate tribunal again with their grievances.

In response, the Congress party has moved to the Income Tax Appellate Tribunal to contest the recovery proceedings, seeking a stay on the process and the freezing of their bank accounts.

The issue of political funding has gained prominence in this election cycle, especially following the Supreme Court's decision to strike down electoral bonds. These bonds, allowing anonymous donations to political parties, were deemed to violate citizens' right to information. The Congress and other opposition parties have hailed this verdict, considering it a blow to the BJP, which had benefited significantly from the scheme.