Tax Appellate Tribunal Concludes Hearing on Congress Tax Dispute, Reserves Order

The Income Tax Appellate Tribunal (ITAT) has wrapped up proceedings regarding the tax recovery dispute involving the Congress party and tax authorities, withholding its decision for a later date.

During the hearing, Congress treasurer Ajay Maken condemned the BJP government’s actions, labeling them as “financial terrorism” and accusing the government of denying the party a fair chance in the upcoming general elections. Maken’s statement underscored the party’s frustration with the ongoing tax-related challenges it faces.

According to Congress leaders, the ITAT has issued an order preventing income tax officials from seizing additional funds from the party’s bank accounts. However, a lien of ₹115 crore imposed by the tax department remains in effect, mandating the Congress to maintain a minimum balance in its accounts.

Congress’s lawyer Vivek Tankha explained, “The ITAT has granted a stay, preventing the IT department from withdrawing any additional funds from our accounts.” This development follows the attachment of ₹65 crore from the Congress’s bank accounts by tax authorities, linked to a delay in filing IT returns for the assessment year 2018-19.

The imposition of a lien, a form of financial hold, prompted Congress’s criticism of the BJP government’s alleged interference with its electoral capabilities. Maken emphasized, “The BJP is attempting to obstruct our participation in the elections. How can we contest the Lok Sabha polls if we cannot access our accounts?”

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Joining in the condemnation, Congress general secretary K.C. Venugopal accused the BJP government of engaging in “financial terrorism,” claiming they were “siphoning money from banks.” However, the BJP has maintained that the matter pertains to routine income tax procedures and does not involve political interference.

Tankha argued that the ongoing appeal process rendered the Congress effectively unable to operate its accounts, undermining its ability to participate fully in the upcoming elections. He highlighted discrepancies in the tax department’s handling of the case, emphasizing the party’s right to appeal the tax assessment.

The dispute revolves around the Congress’s tax liabilities for the assessment year 2018-19, initially amounting to ₹103 crore. Despite subsequent reassessments and appeals, the matter remains unresolved, with the IT department imposing restrictions on the party’s financial operations.

With tensions between Congress and tax authorities escalating, the outcome of the ITAT’s decision will likely have significant implications for the party’s financial and electoral prospects.