In recent weeks, the Indian National Congress has faced a series of tax-related challenges and legal setbacks, prompting accusations from the party that the Union government is aiming to financially “cripple” it ahead of the Lok Sabha elections.
The Congress party’s attempts to challenge proceedings initiated by the Income Tax (IT) Department have been met with consecutive dismissals by the courts.
On March 22, the Court dismissed Congress’s petitions relating to the years 2014-15, 2015-16, and 2016-17, noting that the IT Department had “substantial and concrete evidence” to justify further scrutiny of the party’s income under the IT Act.
Similarly, on March 13, the Court rejected a plea by Congress against an order from the Income Tax Appellate Tribunal (ITAT) denying its request for a stay on a demand notice for the recovery of nearly ₹105 crore in outstanding taxes.
The Bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav declined to interfere with the ITAT order, although Congress was permitted to file a fresh application for a stay before the ITAT. This decision was made considering recent developments, including the recovery of ₹65.94 crore from the party.