'Don't have Rs 115 crore in our bank accounts': Congress reacts to IT dept's move
The ITAT has lifted the freeze on Congress party's bank account but they cannot spend over and above Rs 115 crores
The Income Tax Department and the Income Tax Appellate Tribunal (ITAT) have lifted the freeze on four bank accounts of the Congress but the party has to maintain ₹115 crores in the banks as lien.
This information was shared through a social media post by Ajay Maken, Congress party treasurer.
This amount of ₹115 crores has to remain untouched in compliance with the directive from the tax authorities, implying a freeze on these funds.
Maken said in his post with the hastag 'Democracy Frozen' on microblogging site X on Friday (February 16), "On our petition, Income Tax Department and the Income Tax Appellate Tribunal (ITAT) has said that we have to ensure that Rs 115 crores have to be kept in the Banks. This 115 crore is the lien marked in the Bank Accounts. We can spend an amount over and above that. This means that Rs 115 crores have been frozen. This Rs 115 crores is much more than we have in our current Accounts."
Congress challenges IT department's move
The Congress was pushed into a corner when the Income Tax department froze its main bank accounts, including those of the Youth Congress. Alleging that their accounts were being frozen on "flimsy grounds", the party challenged the move, with Rajya Sabha MP and senior advocate Vivek Tankha appearing for the Congress in ITAT on today.
The ITAT has now given temporary relief for the Congress by allowing the grand old party to operate all bank accounts till a hearing on their plea for interim relief on Wednesday (February 21).
IT department raises ₹210 crore tax
Maken described the IT department’s move as a "disturbing blow to the democratic process". The freeze of Congress' bank accounts allegedly comes after the IT department raised a tax demand of ₹ 210 crore with the Congress for 2018-2019, an election year.
The Congress claims this move is politically motivated and strategically timed to disrupt the party's election preparations.
"Democracy doesn't exist; this is like a one-rule party, and the principal Opposition party has been subjugated. We seek justice from the judiciary, media, and the people," Maken told reporters.
Meanwhile, Tankha posted a video on the microblogging site X and said that he appeared for the Congress party before ITAT.
"All bank accounts of the Congress party have been frozen, which means that one of the largest stakeholders will not be able to participate in the coming festival of elections,” he said, adding that they will not be able to take up any expenditure related to elections.
“We had filed return on time, it is being misconstrued and only on that basis we cannot be punished disproportionately. Our revenue for that particular year was ₹198 crore and we spent admissible expenditure was ₹197 crore,” he revealed. And questioned how a taxation of ₹115 odd crores has been imposed with interest adding upto ₹135 crores.
“I would like to argue on merits. But today protect party and democracy and allow us to operate our accounts, " Tankha told the ITAT.
