Income Tax Department Recovers Rs 65 Cr From Congress Account; Maken Slams `Undemocratic` Move

Terming the deduction undemocratic, the Congress appealed that the department should not proceed further till the disposal of the stay application.

In a setback for the Congress party, the Income Tax Department yesterday recovered Rs 65 crore from the party's account out of the total outstanding tax dues of Rs 115 crore. The Congress party then moved to the Income Tax Appellate Tribunal (ITAT) against the recovery amount deduction and filed a complaint hearing for which is likely to be held today. In its complaint, the Congress party contended that the Tax Department enforced its lien by encashing some of the balances lying with the banks without waiting for the outcome of the scheduled hearing in the ITAT. 

Terming the move undemocratic, the Congress appealed that the department should not proceed further till the disposal of the stay application. The ITAT then directed the tax department to maintain a status quo in the matter and will take up the case at 2:30 pm today.

Meanwhile, Congress leader Ajay Maken alleged the misuse of government agencies. "Concerns rise over the actions of Central Government agencies, potentially threatening the multi-party system in India. If unchecked, democracy in India- will be over. Without intervention of the judiciary, our democratic principles will be endangered," said Maken.

The tax department's action came four days after the tax department de-freeze accounts of the Congress party in a tax case related to 2018-19. The department had frozen the accounts on February 14 over a cash transaction of around Rs 14 lakh in the party's account against which the party moved to the ITAT and the tribunal ordered the re-opening of the accounts with a lien.