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The Hindu
The Hindu
National
The Hindu Bureau

Congress to move High Court after failing to get relief from Income Tax Appellate Tribunal in tax penalty case

Expressing disappointment over the Income Tax Appellate Tribunal’s (ITAT) dismissal of the Congress party’s appeal against imposition of penalty for discrepancies in tax returns for previous years, the party on Friday said it was exploring all legal options and will move the High Court very soon.

The ITAT had on Friday dismissed the appeal of the Congress against the imposition of penalties of ₹210 crore by the Income Tax (I-T) Department.

The party had moved the ITAT against the I-T Department’s penalty over discrepancies in filing tax returns for 2018-19 but did not get relief. “We are exploring all legal options and will move the High Court very soon. The BJP government has deliberately chosen the timing of this to coincide with national election,” Congress treasurer Ajay Maken told The Hindu.

Mr. Maken termed the I-T Department’s action to take away funds from the party’s accounts as “an attack on democracy” as it has come just ahead of the Lok Sabha election and has left the principal Opposition party without funds to contest.

“If the principal Opposition party cannot spend a single paisa, how can one expect fair elections and will democracy be still alive?” asked the Congress treasurer.

Mr. Maken claimed that neither the BJP nor any national political party has, in the history of the country, paid income tax penalty. “Then why single out the Congress party?” he asked.

Congress’ legal cell head Vivek Tankha said the ITAT has not followed its own precedents in this regard and the party will be approaching the High Court soon.

“We are disappointed with the ITAT 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% penalty and that too to a national party, which is now on the verge of contesting national election,” he said.

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