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.
A Division Bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav reserved the order after hearing the arguments of Senior Advocate Vivek Tankha, who has submitted that the party is facing pressure with its funds frozen and the national elections are approaching.
During the hearing, Tankha urged the court to grant the party some protection otherwise it would collapse.
"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 bench, however, orally remarked that there appears to be no fundamental infirmity in the ITAT order and it will deliver the verdict on Wednesday.
The High Court 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.
The bench further said, "merely because someone chose to wake up and put you on notice in February will not change those facts."
Advocate Zoheb Hossain, appeared on behalf of the income tax body, argued that though Congress was offered to pay 20 percent 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.
Earlier before the ITAT also, the Congress had highlighted the hardship it was being faced just ahead of the Lok Sabha elections