IT Department issues Congress demand notice of Rs 1700 crore: Sources

Amid the Lok Sabha poll campaign, the Congress party faces increasing challenges as the Income Tax Department issues a demand notice of approximately Rs 1700 crore, including penalties and interest, spanning the assessment years from 2017-18 to 2020-21, as per sources.

Earlier this week, the Delhi High Court dismissed the party’s plea contesting the Income Tax Department’s decision to initiate reassessment proceedings for the mentioned years. The Division Bench, comprising Justice Yashwant Verma and Justice Purushaindra Kumar Kaurav, dismissed four similar pleas filed by the Congress, aligning with its previous judgment rejecting identical pleas for three years.

Moreover, the Delhi High Court recently upheld the Income Tax Appellate Tribunal (ITAT) order, denying a stay on the Income Tax notice seeking recovery of over Rs 105 crore in outstanding taxes from the Congress. While affirming the ITAT’s decision, the Court granted the Congress liberty to approach the appellate tribunal anew to address its grievances.

In response, the Congress has taken its case to the Income Tax Appellate Tribunal, seeking redressal and requesting a halt to the Income Tax Department’s recovery proceedings, along with the freezing of their bank accounts.