Delhi High Court Dismisses Congress Petitions Challenging Income Tax Assessment

The Delhi High Court has dismissed four new petitions filed by the Indian National Congress (INC) challenging the initiation of Income Tax (IT) reassessment proceedings by the IT Department. The Bench of  Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav rejected the petitions after both the Congress and the IT Department acknowledged that the recent petitions were addressed in a recent judgment by the Court concerning other assessment years.

These latest petitions, pertaining to assessment years 2017-18, 2018-19, 2019-20, and 2020-21, faced similar dismissal terms as those on March 22, which concerned assessment years 2014-15, 2015-16, and 2016-17.

Amidst multiple tax-related proceedings in recent weeks, Congress has accused the Union government of attempting to financially destabilize it ahead of the Lok Sabha elections. The party has faced consecutive setbacks in court regarding challenges against IT Department proceedings.

On March 22, the Court rejected Congress’s petitions for the years 2014-15, 2015-16, and 2016-17, stating that the IT Department had “substantial and concrete evidence” to scrutinize the party’s income further under the IT Act. Similarly, on March 13, the Court dismissed Congress’s plea against an ITAT order rejecting its request for a stay on an IT department demand notice for nearly ₹105 crore in outstanding taxes. Justices Yashwant Varma and Purushaindra Kumar Kaurav upheld the ITAT order, permitting Congress to file a fresh application for a stay before the ITAT considering recent developments, including the recovery of ₹65.94 crore from the party.