Income tax notices were sent to the Indian National Congress in March 2023, and according to ANI, the seven-year assessment proceedings, set to expire on March 31, 2024, were issued as per the law.
These tax notices to the Congress party were issued under Section 153C of the Income Tax Act.
As per an ANI report, assessments against the Congress party were reopened for seven years (assessment years 2014-15 to 2020-21) based on incriminating material seized. During search operations, particularly in April 2019, the report stated that extensive use of cash in the electoral process was discovered.
Read more: Congress faces fresh IT notices over pending Rs 1,823 Cr dues
Facing these tax notices, the Congress party approached the Delhi High Court, seeking to quash the reassessment proceedings for all seven years.
The Delhi High Court, in its orders dated March 22, 2024, and March 28, 2024, dismissed the writs and permitted the completion of the reassessments.
According to the report, during the proceedings, the court thoroughly examined the 'satisfaction note,' detailing the reasons for reassessment proceedings.
Read more: Congress tax trouble: IT slaps Rs 1700 Crore demand notice
In its order, the high court affirmed that the Income Tax Department possesses "substantial and concrete" evidence warranting further scrutiny and examination under the Income Tax Act.
The High Court noted an estimated escapement of income amounting to Rs 520 crore.
Additionally, the high court observed that the assessment must be concluded by March 31, 2024, as per the law, and the Congress party chose to approach the high court only a few days before the completion of the assessment proceedings.
In the latest development posing challenges for the Congress amid the Lok Sabha poll campaign, the Income Tax Department has issued a demand notice of about Rs. 1700 crore to the party.
This fresh demand notice pertains to assessment years 2017-18 to 2020-21 and includes penalties and interest.
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