Delhi High Court Dismisses Congress’s Plea for Tax Relief on ₹105 Crore, Upholds Recovery

Delhi High Court Dismisses:

The Delhi High Court’s recent decision not to interfere with the Income Tax Appellate Tribunal’s order denying the Congress party’s appeal for a stay on the income tax demand notice highlights an ongoing legal battle between the Congress and the Income Tax Department.

Here’s a breakdown of the key events and details:

1. Tax Demand Notice: The Income Tax Department issued a demand notice to the Congress party for the recovery of ₹105 crore in outstanding taxes for the assessment year 2018-19. This notice prompted the Congress to challenge it in various legal forums.

2. Income Tax Appellate Tribunal (ITAT) Decision: The ITAT, on March 8, refused to grant a stay on the income tax demand notice issued by the department. The Congress moved to the Delhi High Court seeking relief from this decision.

3. High Court’s Decision: The Delhi High Court, led by Justice Yashwant Varma, declined to interfere with the ITAT’s decision, stating that it found no grounds to do so. This ruling indicates that the High Court did not see sufficient reason to overturn the ITAT’s decision.

4. Tax Assessment Details: The tax demand stems from the assessment year 2018-19 when the Congress party’s income was assessed to be over ₹199 crore. The initial tax due was ₹103 crore, with an additional ₹32 crore added due to interest. Eventually, the tax due was reassessed to be ₹105 crore.

5. Frozen Bank Accounts: In February, the income tax department seized four main bank accounts of the Congress party due to the tax demand. This action led the Congress to approach the tribunal seeking a stay, as they claimed it would hinder their ability to pay bills and salaries.

6. Appeals and Payments: The Congress appealed to the Commissioner of Appeals but failed to pay the mandatory 20% of the tax due to initiate the appeal. After subsequent appeals and partial payments, the Congress paid ₹1.72 crore in October, but the legal battle continued.

In summary, the Delhi High Court’s refusal to interfere with the ITAT’s decision represents another setback for the Congress party in its efforts to challenge the income tax demand notice. The case underscores the complexities and legal intricacies involved in tax disputes between political entities and government agencies.

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