New Delhi : The Congress party has recently been served a new notice by the Income Tax department, amounting to Rs 1,700 crore, for discrepancies found in tax returns spanning from the years 2017-18 to 2020-21. This development adds to the financial challenges faced by the party, particularly as the Lok Sabha polls draw near.
According to sources, the tax penalties, coupled with interest, stem from inconsistencies in tax filings during the mentioned years. This notice compounds the financial strain on the party, especially after the Income Tax Department withdrew Rs 135 crore from its bank accounts earlier in February for outstanding dues. Additionally, a hefty penalty of Rs 523.87 crore was imposed covering the period from 2014 to 2021 for what was termed as “unaccounted transactions.”
The Congress has been grappling with a financial crunch following the imposition of a Rs 210 crore penalty and the freezing of its funds by the Income Tax authorities. Despite seeking relief from the High Court, the party’s efforts were unsuccessful, prompting considerations of approaching the Supreme Court.
In a related development, the Delhi High Court recently dismissed a plea by the Congress contesting an order issued by the Income Tax Department regarding reassessment proceedings from 2014 to 2017.
The Congress has voiced allegations against the BJP, accusing them of exerting financial pressure and leveraging tax authorities against them, particularly as the Lok Sabha elections are scheduled to commence on April 19. This ongoing financial strain adds to the challenges faced by the party as it navigates the political landscape in the run-up to the elections.
