The Delhi High Court has dismissed the plea filed by the Indian National Congress (INC) Party challenging the Income Tax department's decision to open reassessment proceedings against it for the years 2017-18, 2018-19, 2019-20, and 2020-21. This decision comes after a previous dismissal of the Congress party's plea against reassessment for the years 2014 to 2017.
A Division Bench comprising Justice Yashwant Verma and Justice Purushaindra Kumar Kaurav dismissed four pleas filed by the Congress party, mirroring their earlier judgment where similar pleas were rejected regarding reassessment proceedings for three years.
In a recent development, the Delhi High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT), refusing to stay the Income Tax notice for the recovery of over Rs 105 crore in outstanding taxes against the INC. The Court, while affirming the ITAT order, granted the Congress party the liberty to approach the Appellate Tribunal again with their grievances.
Subsequently, the Congress has lodged an appeal with the Income Tax Appellate Tribunal (ITAT) against the recovery action and has filed a complaint seeking a stay on the Income Tax Department's proceedings for recovery and freezing of their bank accounts.
In its complaint, the Congress party has alleged that the Income Tax Department prematurely enforced its authority by encashing certain bank balances without awaiting the outcome of the scheduled hearing before the bench. The Congress has urged the department to refrain from further action until the disposal of the stay application is determined.
The dismissal of the Congress party's plea marks a continuation of the legal battle between the party and the Income Tax department over reassessment proceedings and outstanding tax liabilities. Despite the setbacks, the question now arises is, will the Congress remain determined to challenge the department's actions through legal recourse, underscoring the ongoing dispute between the political entity and the tax authorities?
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