ITAT Dismisses Plea By Congress To Stay IT Department's Tax Demand

The Income Tax Appellate Tribunal on Friday dismissed a plea filed by the Indian National Congress seeking a stay against the income tax department's action on a tax demand.

After the order was pronounced, senior advocate Vivek Tankha, appearing for the national party, requested the tribunal keep the order in abeyance for 10 days so that the party could move the high court in appeal.

However, the tribunal rejected Congress' request saying that it was not empowered to take such an action.

On Feb. 16, the Indian National Congress said that its bank accounts were frozen over an income tax demand of Rs 210 crore.

Congress Treasurer Ajay Maken, who had earlier addressed a press conference to announce that income tax authorities had frozen its accounts, said the tribunal has put a lien of Rs 115 crore on its accounts and the party has been allowed to spend over and above that.

This means that Rs 115 crore has been frozen. This amount is much more than the party has in its current accounts, Maken said.

During the last hearing, Tankha argued that the demand has been raised before the 2024 general elections and if it is enforced, then it will lead to acute financial hardship for the party.

If a stay is not granted in such a depleted position, then it will make sure that Congress will not be able to contest the coming election on a level playing field. "We are here not only to protect the assessee (Congress), we're here to protect our democracy," Tankha said.

Appearing for the Income Tax Department, lawyer Zoheb Hossain had opposed Congress's stance that the tax demand was raised before the elections.

"This is a demand that we have been trying to recover since 2021. Congress cannot take advantage of its own wrong, as it did not pay nor did it challenge the 2021 order for three years," Hossain said.