Congress faces ₹1,700 crore tax notice amidst financial woes, alleging political motive ahead of elections. The Income Tax authorities served a notice of approximately ₹1,700 crore to the Indian National Congress, which is severely short of cash. This notice is being sent to the party in the midst of ongoing financial difficulties, which include blocked funds and a ₹210 crore penalty.
Specifics of the Notice of Income Tax:
The notice, which is served for the assessment years 2020–21 and 2017–18, carries interest and penalty costs. The notice was attacked by Congress MP Vivek Tankha, who represented the party before the Delhi High Court. According to Tankha, the notice was issued without the necessary assessment orders. According to Tankha, these moves were taken with the intention of financially undermining the major opposition party during the vital national elections.
Judge’s ruling and context:
The case filed by Congress to challenge the four-year evaluation process was recently denied by the Delhi High Court. Consistent with its previous position, the court rejected intervention in the tax reassessment procedure. This revaluation covers the years 2017 through 2021.
Exam Years and Financial Inspection:
The high court’s rejection to put an end to the reassessment procedures for the fiscal years 2014–15 through 2016–17 is only one of the several financial defeats that Congress has experienced. The court noted significant evidence that called for additional investigation, pointing in particular to Megha Engineering and Infrastructure Limited’s (MEIL) unreported payments, a business connected to BJP funding.
MEIL’s Relationship with BJP Fundraising:
MEIL has drawn attention for its political donations to the Bharatiya Janata Party (BJP), especially after it was found to be a major contributor. Electoral Bond data highlights the company’s donations to the BJP, which raises concerns about possible political impact on tax assessments.
Prior Appeals and Legal Challenges:
In other cases, Congress tried to challenge an Income Tax Appellate Tribunal ruling that upheld a demand notice for almost ₹105 crore, but the attempt was unsuccessful. These court battles highlight the party’s continuous battle to handle budgetary difficulties in the face of political pressure.
Claims Regarding Political Motivation:
Congress has continuously claimed that the tax authorities’ measures are politically driven and intended to financially destabilize the party in front of important legislative elections. The party argues that these kinds of actions endanger democracy and make it more difficult for it to compete successfully.
The Congress party has suffered a great deal as a result of the most recent Income Tax notice, which has made its already dire financial situation worse just before important elections. The legal disputes and accusations of political meddling bring to light the difficulties in managing financial and regulatory issues in India’s political environment. The resolution of these court cases will surely influence the party’s future course and political fortunes as it continues to face these challenges.
-Nithika