Congress plea to stay I-T dept action on its bank accounts dismissed, party to move high court

The Income Tax Appellate Tribunal (ITAT) has dismissed the Congress plea seeking a stay on the Income-Tax department's proceedings against its bank accounts ahead of the Lok Sabha elections 2024. The Income Tax Department had initiated proceedings of recovery and freezing of their bank accounts as a penalty for previous I-T returns ahead of the crucial Lok Sabha elections 2024.

Senior Advocate Vivek Tamkha who appeared for Congress requested to keep the order in abeyance for 10 days so that the Indian National Congress (INC) can approach the High Court. However, the bench declined the plea saying that we have no such provision or prayer before it.

Reacting to the ITAT order, Congress senior leader Ajay Maken said the party is exploring legal options and will move the high court against the order.

Earlier in February, Congress had alleged that the Income-Tax department had frozen its bank accounts, terming the action as the "freeze of democracy". Congress also alleged that the Income Tax department had asked for ₹210 crore recovery from Youth Congress and Congress.

Addressing a press conference, Ajay Maken said, “We got information yesterday that banks are not honouring the cheque we are issuing. On further investigation, we got to know that the Youth Congress bank accounts have been frozen. The accounts of the Congress party have also been seized."

"Income tax asked for ₹210 crore recovery from Youth Congress and Congress party. The crowdfunding money in our accounts has been frozen. Just 2 weeks before elections when the opposition's accounts are frozen, it is equivalent to freezing the democracy" he added.

Tax demand is ‘politically motivated’: Congress

While attacking the BJP-led Union Government on the tax demand issue, Congress alleged that the ruling party is misusing the central agencies and their demand for tax is “politically motivated.” The grand old party claimed that this is BJP's strategy to disrupt the preparations of the Congress ahead of the Lok Sabha elections 2024.

Congress accused the government of indulging in “financial terrorism” and called it an attempt to “cripple” the primary Opposition party of India before general elections.