Congress Plea To Stay I-T Department Action Against Its Bank Accounts Rejected

In a major setback to the Congress party ahead of the Lok Sabha polls, the Income Tax Appellate Tribunal (ITAT) on Friday rejected the party’s plea against the Income Tax Department’s action against its bank accounts.

Senior Advocate Vivek Tankha, representing Congress, had requested a 10-day suspension of the order to allow the Indian National Congress (INC) to approach the High Court. The bench, however, turned down the request, stating that no such provision or plea had been presented to them.

Sources informed that Congress intends to challenge the tax tribunal’s decision by moving to the High Court.

The stay application was linked to the Income Tax Department’s demand of Rs 210 crore, issued in connection with the income tax return for the year 2018-19. The Congress claims that this move is politically motivated and strategically timed to disrupt the party’s election preparations.

On February 16, Congress leader and treasurer Ajay Maken claimed that the Income Tax department had frozen four bank accounts belonging to the party and the Youth Congress.

Responding to these claims, the Income Tax department informed the Tribunal that it had not frozen the Congress’s bank accounts but had only requested a lien on the amount based on an earlier demand. Subsequently, Congress leader Vivek Tankha stated that the party’s bank accounts were unfrozen by the IT Appellate Tribunal after the party filed an appeal.

The issue traces back to 2018-19 when the Congress filed the Income Tax Return late. As a result of the assessment, a demand of ₹103 crore was raised, and delays in payment led to increased interest.