A recent report published in media, citing government sources, has refuted the Congress party’s allegations of ‘tax terrorism’ against central agencies, terming them baseless. The sources contend that the ongoing assessment proceedings are a result of seized incriminating material, which would have otherwise become time-barred on March 31 of this year.
As per the report, the Congress party was well-informed about these proceedings and had been given ample time to respond, including during hearings in the Delhi High Court where the party’s plea for relief was denied.
Earlier, the Congress had alleged that its bank accounts were frozen due to a Rs 200 crore penalty from Income Tax authorities. However, on Friday, the party announced receiving a fresh tax notice amounting to Rs 1,800 crore, covering the assessment years 2017-18 to 2020-21 (financial years 2016-17 to 2019-20), including penalty and interest.
Officials disclosed that income tax searches conducted in April 2019 revealed cash receipts by the Congress from Megha Engineering, a significant donor in the electoral bonds scheme, and other entities. These revelations purportedly surfaced during raids on associates of Congress leader and former Madhya Pradesh chief minister Kamal Nath.
Reportedly, the total cash receipts between 2013-14 and April 2019 amounted to Rs 626 crore, allegedly involving proceeds from a corruption scandal. Officials claimed that this was substantiated through various means, including documents found during searches, WhatsApp messages, and recorded statements.
Citing Section 13A of the Income Tax Act, officials highlighted that political parties are exempt from tax on received money if specific conditions, including not accepting amounts over Rs 2,000, are adhered to. They argue that the Congress violated these conditions, thereby becoming liable for tax on its entire income.
The report quoted sources stating, “The Congress has managed to secure a stay because the Income Tax department has presented detailed, corroborated evidence in court records. If Congress believes it is innocent, it should release the entire assessment order to the public, and the truth will be revealed.”
On March 28, the Delhi High Court dismissed four petitions by the Congress against income tax reassessment proceedings for the assessment years 2017-18 to 2020-21.
In response, the Congress has claimed to receive two additional tax notices, in addition to the Rs 1,800-crore demand. Youth Congress members staged protests in Delhi against what they term as the BJP-led Central government’s “tax terrorism.”
Senior Congress leader Jairam Ramesh remarked, “The Congress is under attack, receiving repeated notices. We received two more notices on Friday night, making six after our press conference yesterday. I’m unsure how many more will follow.”
Karnataka Deputy Chief Minister DK Shivakumar commented, alleging that these notices are evidence of the BJP’s fear of the Congress and the INDI alliance. “The BJP understands they will lose the elections, so they attempt to instil fear. I received an Income Tax notice last night regarding a resolved matter,” he claimed.
Accusing institutions such as the CBI and ED of operating under the influence of the BJP-led Central government, Congress leader Rahul Gandhi delivered a stern warning on Friday, March 29, asserting that those undermining democracy would face consequences once the government changes hands.
“Someday, BJP’s government will change. Then, there will be action. And the action will be so stern that this will never happen again. This is my guarantee,” he affirmed, underlining his commitment to rectify perceived injustices once power dynamics shift.
In response to the income tax demand, Congress declared its intent to stage a nationwide protest over the weekend, decrying the purported attack on democracy and denouncing what it termed as “tax terrorism” amidst the looming Lok Sabha elections.
Calling upon its state units, the party urged for “massive public demonstrations at the state and district headquarters” across the country on Saturday and Sunday, signaling its resolve to challenge what it perceives as an assault on democratic principles.
