Congress receives fresh notice from Income Tax department, total demand reaches Rs 3,567 Crore

The grand old Congress Party received yet another notice from the Income Tax Department for three more assessment years, taking the current outstanding to Rs 3,567 crore. The notice was served on March 30, following a previous notice of approximately Rs 1,700 crore on March 29. The fresh notice amounts to Rs 1,745 crore.

This encompasses the assessment periods from 2014-15 to 2016-17. The recent notice issued on March 30, pertains to the assessment years spanning from 2017-18 to 2020-21, which also includes penalties and interest charges. When combined with the previous notice for the assessment year 1994-95, the cumulative demand from Congress now amounts to Rs 3,567 crores.

Congress lawyer and Rajya Sabha MP Vivek Tankha called these demands “High of insanity” and called out the ruling BJP for “an astronomical figure of Rs 3567.33 crores in last three days.”

He posted on X, “BJP must thank and felicitate select officers of the Revenue department for their studious and loyal adherence to BJP mission of ‘Congress Mukta Bharat'”.

“But they have misjudged the intelligence and gravitas of people of India. Indian electorate has never supported autocratic conduct. No Democracy possible sans opposition parties,” he added.

Before these notices were issued, the Income Tax department had already retrieved Rs 135 crore from Congress bank accounts in Delhi, concerning tax dues and accrued interest for the assessment year 2018-19.

On March 22, the court rejected Congress’s pleas contesting tax reassessment procedures for the assessment years 2014-15, 2015-16, and 2016-17.

After receiving the second notice, Congress leader Rahul Gandhi warned people 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, signalling its resolve to challenge what it perceives as an assault on democratic principles.

It is pertinent to mention that, as per media reports, 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.

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.

Thereport 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.”