Congress' Plea To Stay Income Tax Department's Action Against Its Bank Accounts Dismissed

The Congress had also accused the BJP government of "financial terrorism" and attempting to "cripple" its primary opposition.

NEW DELHI: In a major setback for the Congress party, the Income Tax Appellate Tribunal (ITAT) on Friday declined its plea seeking a stay against the Income Tax Department's actions to recover and freeze the party's bank accounts. Senior Advocate Vivek Tamkha, representing the Congress, urged the tribunal to postpone the order for ten days, allowing the party to approach the High Court. However, the bench rejected this request, citing the absence of such provisions or prayers before them.

The Income Tax Appellate Tribunal (ITAT) dismisses the plea moved by the Congress Party which sought a stay against Income Tax Department proceedings of recovery and freezing of their Bank accounts.

Senior Advocate Vivek Tamkha who appeared for Congress requested to keep the… pic.twitter.com/mPpja89ayy — ANI (@ANI) March 8, 2024

Vivek Tankha, who is also the Congress legal cell head, said that he was extremely disappointed with the Income Tax Appellate Tribunal's order which did not follow its own past precedents. He added that the party is exploring all legal options on the I-T Appellate Tribunal's order and will move to the high court against it soon.

Financial Terrorism By BP: Congress

Reacting to the development, Congress leader Ajay Maken said, ''The I-T tribunal order freezing Congress's funds is an attack on democracy as it has come ahead of national elections.'' Reiterating its accusations of misuse of central agencies by the BJP, Congress labelled the tax demand as "politically motivated." It claimed that the timing of the tax demand was aimed at disrupting the party's election preparations. Additionally, the Congress accused the BJP government of engaging in "financial terrorism" and attempting to "cripple" its primary opposition.

Tax Dispute

On February 16, the Congress publicly disclosed that the Income Tax department had frozen its bank accounts due to a dispute over a tax demand amounting to Rs 210 crore. While the Income Tax department did not issue an official statement regarding its actions against the Congress' bank accounts, official sources maintained that it was a routine procedure applied to individuals or entities failing to pay income tax dues.

Subsequently, the Congress alleged that the Income Tax department had "withdrawn" Rs 65 crore from its accounts in various banks, describing the act as "undemocratic." This withdrawal occurred despite the ongoing legal proceedings concerning the Congress' income tax returns from previous years.