I-T tribunal dismisses Congress' plea to stay order on freezing bank accounts

In a major blow to the Congress ahead of the Lok Sabha polls, the Income Tax Appellate Tribunal on Friday (March 8) dismissed the party’s plea requesting a stay on the freezing of its bank accounts by the Income Tax department.

The department in February froze four of Congress’ bank accounts including that of the Indian Youth Congress while imposing a penalty of ₹210 crore for alleged discrepancies in I-T returns for previous years.

The party had pleaded the tribunal to put a stay on the order for 10 days to enable the Congress to move high court. But the tribunal declined to do the same.

Congress treasurer Ajay Maken said the party is exploring all legal options and would move the high court "very soon".

How can fair elections be possible? says Maken

Accusing the BJP government of pulling the strings in the case, Maken wondered how fair elections are possible when funds to the tune of ₹270 crore of the main opposition party is frozen just before the election.

“The BJP government has deliberately chosen the timing of this to coincide with national elections," Maken told PTI.

He said the I-T tribunal’s order freezing Congress's funds is "an attack on democracy" as it has come just ahead of national elections.

“How can one expect fair elections in such a situation when funds to the tune of ₹270 crore have been frozen or taken away by the Income Tax authorities from Congress party's accounts," he asked.

‘Tribunal didn’t follow past precedents’

Confirming the order, Congress' legal cell head Vivek Tankha said the tribunal has not even followed its own past precedents in this regard and the party will be approaching the high court soon.

“We are disappointed with the Income Tax Appellate Tribunal order. We will be moving the high court very soon. They have not followed their own past precedents in granting relief on payment of 20 per cent penalty and that too to a national party which is now on the verge of contesting national elections, which is going to be notified soon," Tankha told PTI.</p> <p>

‘Tax terrorism’

The Congress had earlier termed the Income Tax authorities' decision as "tax terrorism" coming ahead of general elections only to cripple the funds of the principal opposition party.

The Congress had earlier alleged that the Income Tax department has "withdrawn" a sum of ₹65 crore from its accounts in different banks "undemocratically" and claimed that it has frozen another ₹205 crore of its funds. Maken claimed that "democracy will be over in the country if the action of probe agencies goes unchecked" and said the Congress has full faith in the judiciary.

(With inputs from agencies)