Delhi High Court Dismisses Congress Party’s Petitions Against Income Tax Department

Delhi High Court Dismisses Congress Party's Petitions Against Income Tax Department

VoM News Desk | March 22, 2024 | 03:13 PM IST | Breaking News, Courts & Law, India | Follow on Google News

Delhi High Court Dismisses Congress Party’s Petitions Against Income Tax Department

Delhi High Court Dismisses Congress Party’s Petitions Against Income Tax Department

The Delhi High Court rejected the petitions filed by the Indian National Congress (INC) Party challenging the Income Tax Department’s decision to open assessment proceedings for the fiscal years 2014-2015, 2015-2016, and 2016-2017. Justices Yashwant Verma and Purushaindra Kumar Kaurav presided over the case and dismissed the plea.

Legal Representation and Arguments

Senior Advocate Abhishek Manu Singhvi represented the Congress party, while Special Counsel Zoheb Hossain appeared for the Income Tax Department. Singhvi contended that the reassessment action was time-barred, as the department could only reassess up to six assessment years. However, the IT Department informed the court that based on seized material, the amount in question totaled approximately Rs. 520 crores.

Further Legal Challenges and Proceedings

The Congress party also challenged reassessment for four additional years by the Income Tax Department, with the Delhi High Court scheduled to hear that petition on Thursday. Previously, the Delhi High Court upheld the Income Tax Appellate Tribunal (ITAT) order denying a stay on the Income Tax notice for the recovery of over Rs. 105 crore in outstanding taxes against the INC. While affirming the ITAT order, the court granted the Congress party the liberty to approach the Appellate Tribunal again with their grievances.

Congress’s Response and Legal Action

Facing enforcement actions by the Income Tax Department, including encashment of bank balances, the Congress party has approached the Income Tax Appellate Tribunal and filed a complaint seeking a stay on the recovery proceedings and freezing of their bank accounts. They argued that the department should halt further actions until the outcome of pending hearings.

Implications and Next Steps

The court’s dismissal of the petitions represents a setback for the Congress party in its legal battle against the Income Tax Department’s reassessment proceedings. With ongoing legal challenges and enforcement actions, the Congress continues to pursue avenues for relief and recourse through the appellate process and judicial review.

VoM News Desk

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