NEW DELHI: The Delhi High Court Tuesday reserved its verdict on the Congress party’s plea challenging a 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.
Senior Advocate Vivek Tankha, submitted that the party under pressure as its funds are frozen and the general elections are approaching.
“I am told that seven to eight years of my assessment have also been reopened....We feel protected only if the constitutional court protect us,” he said. The HC, however, orally remarked that there appears to be no fundamental infirmity in the ITAT order and it will deliver the verdict on Wednesday.
The HC also pointed out that the demand was from 2021 and it seems the petitioner made no efforts to securitise the demand and “badly handled the matter.”“..Someone in petitioner’s (Congress) office has remained asleep since 2021,” it remarked.
Advocate Zoheb Hossain, who appeared on behalf of the income tax body, argued that though Congress was offered to pay 20 per cent of the demand way back in 2021, it was not done. In such situations, the entire amount becomes recoverable, he submitted.
Hossain informed the court that the original tax demand stood at Rs 102 crore and with interest it became Rs 135.06 crore. He said Rs 65.94 crore stands recovered now.
The case
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.