
The Income Tax Department has managed to recover a staggering Rs 115 crore from various bank accounts linked to the Indian National Congress (INC), which were kept under attachment for taxation irregularities. However, the investigation is far from over, as an outstanding amount of Rs 19 crore remains to be recovered, Moneycontrol reported.
Defending the action, tax official sources have assured that the recovery is purely procedural, based on the assessments of taxation discrepancies found during the investigations.
“At present, recovery to the tune of Rs 115 crore has been made by withdrawing money from various bank accounts of INC. In proceedings before Income Tax Appellate Tribunal (ITAT) on February 16, 2024, it was informed by the Income Tax Department that the recovery made by withdrawing money from accounts is a routine recovery measure,” Moneycontrol quoted the source as saying.
The ITAT has scheduled the hearing for February 21, 2024, in the case involving a demand of Rs 135 crore against the Indian National Congress (INC) for the assessment year 2018-19. This amount comprises Rs 103 crore related to assessment and approximately Rs 32 crore in interest. The assessment was conducted based on the INC's income of Rs 199 crore for the specified year.
The scrutiny assessment under Section 143(3) of the Income Tax Act, which entails a comprehensive examination of the Indian National Congress's (INC) tax return to verify various claims and deductions, concluded on July 6, 2021. Notably, the assessment disallowed the exemption under Section 13A, which, under the Income Tax Act, exempts any income of a political party derived from sources like house property, capital gains, and others.
The income tax assessment determined that the Indian National Congress (INC) was not eligible for the exemption under Section 13A of the Income Tax Act. This decision was influenced by factors such as the delayed filing of the tax return and non-compliance with Section 13A(d). Under this section, any income received by a political party from voluntary contributions or any interest, dividend, or rent from its assets is typically excluded from the party's total income for tax purposes.
In subsequent stay proceedings before the Assessing Officer, the Indian National Congress (INC) was required to make a payment of 20 percent of the total demand, amounting to Rs 21 crore, in accordance with the standard procedure. However, INC only remitted Rs 78 lakh, prompting the issuance of a tax demand for the remaining balance. The appeal to the ITAT was filed by the Indian National Congress in May 2023.
Following the assertion by Congress Treasurer Ajay Maken that the party's bank accounts were frozen, the Income Tax Appellate Tribunal clarified that there were no restrictions on the Congress party accessing its bank accounts. Rajya Sabha MP and lawyer Vivek Tankha, representing the Congress party before the tribunal bench in Delhi, argued that the frozen accounts would hinder the party's participation in the upcoming Lok Sabha elections.
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