IT Issues Rs 1700 Cr Demand Notice to Conress Party: Sources

Amid Lok Sabha poll campaigning, Congress faces mounting troubles as the Income Tax Department issues a demand notice of approximately Rs 1700 crore to the party, sources reveal.

The fresh demand notice covers assessment years from 2017-18 to 2020-21 and encompasses penalty and interest charges. Earlier this week, the Delhi High Court dismissed the party’s plea challenging the opening of reassessment proceedings by the Income Tax Department for the mentioned years.

A Division Bench comprising Justice Yashwant Verma and Justice Purushaindra Kumar Kaurav dismissed four pleas filed by Congress, mirroring its earlier judgment, which had rejected identical pleas regarding reassessment proceedings for three years.

Recently, the Delhi High Court upheld the Income Tax Appellate Tribunal (ITAT) order, which denied a stay on the Income Tax notice for the recovery of over Rs 105 crore in outstanding taxes against Congress. While affirming the ITAT order, the Court granted Congress liberty to approach the appellate tribunal again with their grievance.

In response, Congress has approached the Income Tax Appellate Tribunal (ITAT) against the recovery proceedings and filed a complaint seeking a stay on Income Tax Department actions for recovery and the freezing of their bank accounts.