GG News Bureau
New Delhi, 30th March. The Indian National Congress faces mounting troubles as the Income Tax Department issues fresh notices, demanding approximately ₹1700 crore from the party amid the ongoing Lok Sabha election campaign. Sources reveal that the notices were issued back in March 2023, with assessment proceedings for seven years set to expire on March 31, 2024, under Section 153C of the Income Tax Act.
These assessments, spanning from 2014-15 to 2020-21, were reopened based on incriminating material seized during search operations, particularly in April 2019, where extensive cash usage in the electoral process was uncovered.
The Congress party had approached the Delhi High Court seeking to quash the reassessment proceedings for all seven years. However, the court, in its orders dated March 22 and March 28, 2024, dismissed the writs and allowed the reassessments to proceed.
During the proceedings, the court reviewed the ‘satisfaction note’ comprehensively, acknowledging substantial evidence warranting further scrutiny under the Income Tax Act. It noted an estimated income escapement of ₹520 crore.
The High Court emphasized that the assessments must be completed by March 31, 2024, in adherence to the law, highlighting the Congress’s delayed approach to the court just before the completion of assessment proceedings.
Sources within the Income Tax Department emphasized adherence to principles of natural justice, asserting that ample opportunities were provided to the Congress to respond to observations from the Delhi High Court. Following thorough consideration of Congress’s submissions, the Department finalized the assessments for all seven years.
The issuance of fresh demand notices, totaling around ₹1700 crore, for the assessment years 2017-18 to 2020-21, including penalties and interest, adds to the woes of the Congress party amidst the electoral campaign for the upcoming Lok Sabha elections.
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