The Aryavarth Express
Agency(New Delhi): The Indian National Congress received income tax notifications in March 2023 for the past seven years, and according to inside information, these assessment actions were on the brink of reaching their legal deadline on March 31, 2024. These notifications were dispatched pursuant to Section 153C of the Income Tax Act.
During April 2019 searches, evidence emerged showing significant cash transactions in election campaigns, leading to the reopening of assessments for the Congress for the years 2014-15 through 2020-21, insiders report. Facing these tax challenges, Congress sought the intervention of the Delhi High Court to halt the reassessment for these years.
However, the High Court, through rulings on March 22 and March 28, 2024, denied these petitions, allowing the reassessment to proceed. The court reviewed the “satisfaction note” in detail, which outlined the rationale for these proceedings, and concluded that the Income Tax Department possessed “substantial and concrete” evidence justifying further investigation.
It was observed by the court that income around Rs 520 crore had been underreported, and underscored the necessity for the reassessment to conclude by March 31, 2024, in accordance with the law. The Congress party’s decision to approach the High Court shortly before the deadline was also noted.
Sources indicate that the Income Tax Department is committed to adhering to the principles of fair play, providing the Congress with all the evidence upon which the Department’s conclusions are based, and offering numerous chances for Congress to respond to the High Court’s observations. After evaluating the party’s responses, the Department has finalized the assessment for the specified seven years.
In what appears as escalating issues for Congress amidst their Lok Sabha campaign efforts, the Income Tax Department has now served the party a tax demand notice amounting to approximately Rs 1700 crore, covering the assessment years 2017-18 to 2020-21, which also accounts for penalties and interest, insiders have revealed.
