Delhi High Court Dismisses Another Plea By Congress Party Against Tax Re-Assessment Of Four Years

The Delhi High Court on Thursday dismissed the pleas moved by the Indian National Congress against the initiation of income tax re-assessment proceedings against it for four years (2017-18, 2018-19, 2019-20 and 2020-21) by the tax authorities.

A division bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav rejected four pleas filed by the Indian National Congress on similar terms as its earlier judgment whereby identical pleas of the political party were dismissed regarding the reassessment proceedings for three years (2014-15, 2015-16 and 2016-17).

On March 25, the court had dismissed three petitions filed by Congress observing that the political party had chosen to approach the court only a few days before the time for completion of assessment would expire and at the “proverbial fag end of the proceedings.”

It had added that the income tax authorities appear to have collated substantial and concrete evidence warranting further scrutiny and examination of Congress' income under the Income Tax Act.

Previously, the court had upheld the order passed by the Income Tax Appellate Tribunal (ITAT) on March 08 refusing to stay a demand notice issued to the political party for recovery of outstanding tax of more than Rs. 100 crores for the assessment year 2018-19.

However, it granted liberty to the Congress to move a fresh application for stay before the ITAT bearing in mind the developments which have occurred in the meanwhile including that of an amount of Rs.65.94 crores having been recovered by the tax authorities pursuant to encashment of the bank drafts.

The bench had added that Congress' application, if so moved, may be considered by the ITAT with due expedition.

Title: INDIAN NATIONAL CONGRESS v. DEPUTY COMMISSIONER OF INCOME TAX and other connected matters

Citation: 2024 LiveLaw (Del) 371