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Income Tax Department Issues ₹1,700 Crore Demand Notice to Indian National Congress

Kalyani Jha
29 Mar, 2024

The Income Tax Department has recently issued a demand notice amounting to ₹1,700 crore to the Indian National Congress for the assessment years 2017-18 to 2020-21, inclusive of penalties and interest. This development, reported by the ANI news agency citing sources, adds to the ongoing financial challenges faced by the Congress party, which has been vocal about alleged attempts to weaken it financially by the BJP-led Centre government.

Demand Notice Details:

The fresh demand notice of ₹1,700 crore encompasses penalties and interest for the specified assessment years, intensifying the financial scrutiny on the Indian National Congress.

Congress Allegations and Response:

The Congress has vehemently accused the ruling BJP of misusing central agencies like the Income Tax Department to undermine its financial stability. In recent weeks, Congress leaders have voiced concerns about these actions affecting the party’s operational capabilities, especially during crucial periods such as elections.

Congress leader Ajay Maken highlighted the challenges faced, noting the inability to utilize ₹285 crore held in their bank accounts for essential activities like publicity campaigns through media and printing materials. This financial constraint has raised broader questions about the democratic process and the impact of financial restrictions on political activities.

Questions Raised by Congress:

Maken questioned the timing of the demand notices, which come just a month before the announcement of elections. He emphasized that political parties are typically exempt from income tax penalties, raising concerns about the unprecedented nature of these actions against the Congress.

Previous Legal Proceedings:

The Income Tax Appellate Tribunal (ITAT) previously dismissed the Congress Party’s plea seeking a stay against Income Tax Department proceedings related to recovery and freezing of bank accounts. The ITAT deemed the Stay Application as lacking merit, further complicating the financial situation for the Congress.

Congress’s Complaint:

Earlier complaints filed by the Congress Party highlighted instances where the Income Tax Department enforced penalties by encashing bank balances before the conclusion of relevant legal hearings, leading to operational disruptions and financial constraints.

The ongoing financial challenges and legal battles underscore the complex intersection of politics and financial regulations, raising broader discussions about transparency, fairness, and the role of regulatory bodies in political landscapes.