"Acted with responsibility": Income Tax Department informs Tribunal on Congress plea against tax recovery from bank accounts

New Delhi [India], February 21 : The Income Tax Department on Wednesday submitted before the Income Tax Appellate Tribunal (ITAT) that they acted with responsibility and their action was fully in line with the law to obtain demand drafts of Rs 65 crore from the bank accounts of Congress party.
The Income Tax Department yesterday recovered Rs 65 crore from the accounts of the Indian National Congress out of the total outstanding tax dues of Rs 115 crore.
Advocate Zoheb Hossain, the counsel for the Income Tax Department, defended the decision to recover the amount and submitted that there has been a breach of rules by Congress and, in such a scenario, the entity must be treated as a normal assesse.
The counsel told the Tribunal that they were ready to give an undertaking if Congress wins the case. "We are ready to give back the amount assured," he said.
He submitted that on July 6, 2021, the first notice of recovery was given. He said the Congress party filed an appeal for a complete stay on October 28, 2021, but for this, they had to deposit 20 per cent of the dues as per IT Act. He said they were requested to pay 20 per cent of the demand but it was not done.
"On January 9, 2023, we sent another letter seeking payment for outstanding demand. We received an email from Congress seeking an adjournment only. Over a period of four years their conduct was not to pay," he said.
IT Department counsel said an application to the Commissioner of Income Tax (Appeals) on March 28, 2023 for a stay of demand application became infructuous as the appeal was dismissed on merit.
Hossain said a false narrative is being created that "they're being targeted before the general elections and this narrative is completely baseless".
Meanwhile, Senior Advocate Vivek Tankha, who appeared for the Congress party, submitted that the compliance requirements have been met.
"Wrong interpretation has been given by Income Tax. Our bank account has been frozen and on February 16 our accounts were made lien. Last evening, they went and withdrew Rs 65 crore. We are one of the largest parties and we are on the eve of the election. If our accounts are frozen like this, how a democracy will survive," he said.
"This is not a case where Rs 135 crore demand should be made on us while we are right ahead of polls. All the bank accounts at that point in time were frozen. I'm not a runaway person, I'm a 100-year-old party...to put such a condition right before elections is to ensure that I don't participate in the festival of democracy," he added
The Congress today approached the Income Tax Appellate Tribunal (ITAT) against the recovery and has filed a complaint.
In the complaint, Congress said the Income Tax Department has enforced its lein by encashing some of the balances lying with the banks without waiting for the outcome of the hearing scheduled before the bench. Congress appealed that the department should not proceed further till the disposal of the stay application.