The Aryavarth Express
Agency(New Delhi): The Delhi High Court has declined the petitions filed by the Congress party, which contested the initiation of tax reassessment proceedings by the tax authorities for the period between 2017 and 2021. The bench, comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav, based their decision on a previous judgment that refused to interfere with the reassessment process for an earlier period.
The issue at hand related to the assessment years from 2017 to 2021. This follows a recent dismissal of the Congress party’s appeal against the commencement of reassessment for the years 2014 to 2016. On March 22, the court upheld the tax authority’s right to reassess, citing “substantial and concrete” evidence that justified further investigation. However, it left unanswered the question of whether the delay in starting the reassessment proceedings could invalidate the process.
In the dismissed petition, the Congress argued that the reassessment, under Section 153C of the Income Tax Act, was prompted by searches on four individuals in April 2019 and was therefore time-barred. The party maintained that the evidence collected during those searches led to the decision to begin proceedings against it.
Contrarily, the Income Tax (I-T) department defended its position, arguing there was no breach of statutory guidelines. According to the department, the investigation revealed that the Congress had “escaped” income exceeding Rs 520 crore.
Additionally, the High Court recently upheld the Income Tax Appellate Tribunal’s decision to not stay a notice from the I-T department demanding the Congress pay outstanding taxes over Rs 100 crore. This demand was based on an assessment year 2018-19, during which the party’s income was estimated to be over Rs 199 crore.