Congress Party emphasized that the Income Tax Department should halt any further action until the outcome of the stay application pending in ITAT
The Indian National Congress has found itself in the midst of a financial tussle with the Income Tax Department, as Rs 65 crore was recently recovered on Tuesday from its account out of a total outstanding tax demand of Rs 115 crore. The Congress party swiftly moved the Income Tax Appellate Tribunal (ITAT) in response to this development.
According to a report from news agency ANI, the Congress party expressed its dismay at the Income Tax Department’s action of encashing a portion of the balances held in banks, citing that this was done prior to the scheduled hearing before the tribunal bench.
Insisting on a fair process, the Congress emphasized that the IT Department should halt any further action until the outcome of the pending stay application. ITAT has, in turn, directed that the status quo be maintained until the matter is fully heard, with a hearing set for 2.30 pm on Wednesday as per ANI reports.
Earlier, Congress Treasurer and senior leader Ajay Maken had raised concerns over the freezing of four bank accounts belonging to the party and the Youth Congress. In connection with the income tax return case for the fiscal year 2018-19, a substantial demand of Rs 210 crore had been raised by the IT Department.
Clarifying its position, the IT Department informed ITAT that while it had not frozen the Congress’s bank accounts, it had requested a lien on the amount as per an earlier demand.
Ajay Maken, in a statement, shed light on the demand made by the IT Department, indicating that the party was required to maintain Rs 115 crore in the banks. “This Rs 115 crore is the lien marked in the bank accounts. We can utilize an amount above this frozen sum. However, the Rs 115 crore is more than what we have in our current account,” Maken mentioned.
During the previous ITAT hearing, the Congress had sought a stay on the alleged attachment of its bank accounts by the Income Tax Department.
This development underscores an ongoing financial dispute between the Congress party and the Income Tax authorities, with the matter now pending before the ITAT for resolution.
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