NEW DELHI: The Congress on Monday approached the Delhi High Court against the March 8 order of the Income Tax Appellate Tribunal (ITAT) which dismissed the party’s plea to stay action against its bank accounts.
The Congress’ primary bank accounts were frozen on February 16 over an Income Tax demand of Rs 210 crore for the 2018-19 FY as recovery over a 45-day delay in filing returns and cash contributions from its legislators.
The matter, argued by senior advocate Vivek Tankha, initially came up before a bench headed by Acting Chief Justice Manmohan and comprising Justice Tushar Rao Gedela on Monday.
Tankha told the court that it is an urgent matter as the the political party is unable to operate with its funds frozen. “This is the peak time for elections. If we do not have the money, how will we fight?” Tankha submitted before the court citing the ITAT protection has gone now.
The Justice Manmohan-led bench agreed to hear the matter for urgently, listing it later before a bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav. This bench, however, said it would hear the matter on March 12 as it needs to go through the documents.
ITAT, on March 8, had rejected the Congress party’s application seeking a stay on the February 13 notice of the Income Tax department initiating recovery proceedings against it.
The assessing officer had raised a tax demand of more than Rs 105 crore for the assessment year 2018-19 when the income was assessed to be more than Rs 199 crore.
Before the ITAT, the Congress counsel stressed upon the hardship created for the assessee, a national party, in view of the upcoming Lok Sabha polls.The initiation of the recovery proceedings are so timed that the assessee would not be left with resources to contest the general elections.
‘Cannot contest Lok Sabha polls without funds’
Arguing their case before the IT Appellate Tribunal, the Congress’ counsel stressed upon the hardship created for the assessee (Congress), a national party, in view of the upcoming Lok Sabha polls.