The Delhi High Court has dismissed the Indian National Congress (INC) Party's petitions challenging the Income Tax Department's order to open assessment proceedings for the years 2014-2015, 2015-2016, and 2016-2017.
Senior Advocate Abhishek Manu Singhvi represented the Congress party while Special Counsel Zoheb Hossain appeared for the Income Tax Department during the proceedings.
Singhvi argued that the reassessment action by the Income Tax Department is time-barred as they can only go back a maximum of six assessment years. However, the IT Department informed the court that based on seized material, the amount involved is approximately Rs. 520 crores.
This development comes after the Delhi High Court upheld the Income Tax Appellate Tribunal (ITAT) order refusing to stay the Income Tax notice for the recovery of over Rs. 105 crore in outstanding taxes against the INC.
The court granted the Congress party the liberty to approach the Appellate Tribunal again with their grievances. Subsequently, the Congress approached the ITAT against the recovery and filed a complaint seeking a stay on the Income Tax Department's recovery proceedings and freezing of their bank accounts.
The Congress party expressed concern over the Income Tax Department's enforcement actions, stating that the department encashed balances held in bank accounts without awaiting the outcome of the pending hearing before the bench. The party appealed to the department to refrain from further proceedings until the stay application's disposition.
In related news, the Delhi High Court is scheduled to hear the Congress party's challenge against four additional years of reassessment initiated by the Income Tax Department on Thursday.
The outcome of these legal proceedings will significantly impact the financial and legal landscape for the Congress party, as they navigate through the complexities of tax assessment and recovery processes.
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