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Business News/ News / India/  Income Tax Dues: I-T Appellate Tribunal reserves order on Congress plea against 65 crore tax recovery
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Income Tax Dues: I-T Appellate Tribunal reserves order on Congress plea against ₹65 crore tax recovery

The Income Tax Department on 15 February had recovered ₹65 crore from the accounts of the Indian National Congress out of the total outstanding tax dues of ₹115 crore.

On 22 February, Congress argued that if a stay is not granted then the party would be under a grave financial crunch right ahead of the 2024 Lok Sabha Elections. (AICC)Premium
On 22 February, Congress argued that if a stay is not granted then the party would be under a grave financial crunch right ahead of the 2024 Lok Sabha Elections. (AICC)

Income Tax Appellate Tribunal reserved order on the plea by Congress seeking a stay against I-T Department's proceedings of recovery and freezing of the grand old party's bank accounts. The Income Tax Department had recovered 65 crore from the accounts of the Indian National Congress out of the total outstanding tax dues of 115 crore. The Congress had called the act "undemocratic" even when the case pertaining to their return for previous years is sub judice.

On February 14 the IT Department issued a notice to four bankers of 11 branches of AICC, Youth Congress and NSUI. The Congress' main bank accounts were frozen on Friday over an Income Tax demand of 210 crore but an I-T appellate tribunal later allowed it to operate them pending a further hearing next week, a huge relief for the party which said the move had impacted all political activity.

The Congress had approached the Income Tax Appellate Tribunal (ITAT) against the tax recovery and filed a complaint.

In the complaint, Congress said the Income Tax Department has enforced its lein by encashing some of the balances lying with the banks without waiting for the outcome of the hearing scheduled before the bench. Congress appealed that the department should not proceed further till the disposal of the stay application.

On 22 February, Congress argued that if a stay is not granted then the party would be under a grave financial crunch right ahead of the 2024 Lok Sabha Elections. 

I-T Department countered the argument stating that the recovery and freezing of accounts “is a regular recovery proceedings and no propaganda ahead of polls". 

I-T Department also stated that the conduct of Congress was not “correct" and accused them of not paying the Income Tax dues for several years.

The Congress on Thursday accused the BJP-led Centre of indulging in "financial terrorism" against it and alleged that the government had "looted" over 65 crore from its accounts to economically cripple the party ahead of Lok Sabha polls.

The Congress also alleged that the ruling party was attempting to "murder democracy" and drag the country to a "dictatorship raj".

Addressing a press conference at the AICC headquarters along with Congress leaders K C Venugopal and Ajay Maken, Congress general secretary in-charge communications Jairam Ramesh said "tax terrorism attacks" were being carried out against it.

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Published: 22 Feb 2024, 04:47 PM IST
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