Setback for Congress as I-T Department serves Rs 1,700 crore notice ahead of LS polls

The financial concerns of the Congress party have increased further following the issue of Rs 1,700 crore notice from the Income Tax department ahead of the Lok Sabha elections 2024. 

The notice, encompassing penalty and interest, spans the assessment years from 2017-18 to 2020-21. 

The move comes following the Delhi High court’s dismissal of the party’s petition contesting the reassessment proceedings for four consecutive assessment years. 

Spokesman for the Congress revealed the release of the new demand, highlighting the party's concern only days before the pivotal presidential election. Renowned attorney and Congress MP Vivek Tankha of the Rajya Sabha attested to the party's intention to take legal action as well as the fact that the notices had been received. Tankha called the measures of the Income Tax Department unfair and undemocratic.

Tankha further criticized the tax department's handling of the situation, alleging that the notice arrived without essential accompanying documents, particularly assessment orders. He portrayed the move as a financial strangulation of the principal opposition party, particularly untimely given the electoral context.

Prior to this, the tax department had previously retrieved Rs 135 crore from the Congress party's Delhi bank accounts. This amount related to tax arrears and interest for the assessment year 2018–19, during which the party was not granted exemption since it did not follow the required procedures.