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The Income Tax Department has issued a demand notice of approximately Rs 1700 crore to the Congress party, adding to its woes during the ongoing Lok Sabha election campaign.

This notice covers the assessment years from 2017-18 to 2020-21 and encompasses penalty charges along with accrued interest. The development comes in the wake of the Delhi High Court's recent dismissal of the Congress's plea challenging the opening of reassessment proceedings by the Income Tax Department for the mentioned years.

Earlier in the week, a Division Bench comprising Justice Yashwant Verma and Justice Purushaindra Kumar Kaurav rejected four pleas filed by the Congress party, mirroring previous judgments where similar pleas were dismissed concerning reassessment proceedings for three years.

Additionally, the Delhi High Court upheld an Income Tax Appellate Tribunal (ITAT) order that declined to stay the recovery of over Rs 105 crore in outstanding taxes against the Congress. While affirming the ITAT's decision, the court granted the Congress the freedom to approach the appellate tribunal anew with their grievances.

Also Read : What did the Delhi High Court say on the matter ?

In response to the mounting challenges, the Congress has taken recourse to legal measures. The party has recently lodged a complaint with the Income Tax Appellate Tribunal (ITAT) and is seeking a stay against the ongoing proceedings initiated by the Income Tax Department.

The Congress aims to halt the process of recovery and prevent the freezing of its bank accounts as part of its efforts to address the situation.

These developments come at a critical juncture for the Congress party, coinciding with the intense electoral campaign for the Lok Sabha elections. The issuance of a significant demand notice and the legal battles surrounding it add further pressure to the party's already challenging political landscape.

The Congress's response to these legal proceedings and its efforts to navigate through these challenges will be closely watched as the election campaign progresses.