22 March 2024 8:51 AM GMT
The Delhi High Court on Friday dismissed the pleas moved by the Indian National Congress against the initiation of income tax re-assessment proceedings against it for three years (2014-15, 2015-16 and 2016-17) by the tax authorities.
A division bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav pronounced the order. A copy of the order is awaited.
The court had reserved the verdict on March 20 after hearing Senior Advocate Abhishek Manu Singhvi and Advocate Zoheb Hossain appearing for tax authorities.
Appearing for Indian National Congress, Singhvi has submitted that the action of the tax authorities is “barred by limitation” as they could have gone back to maximum of six assessment years.
On court's query as to what is the alleged escaped income by the Congress, Hossain had responded that as per the seized material, the amount is about Rs. 520 crores.
Notably, Congress has also filed fresh pleas challenging initiation of tax re-assessment proceedings against it for four different years. The petitions are yet to be listed before the High Court.
Recently, the court had upheld the order passed by the Income Tax Appellate Tribunal (ITAT) on March 08 refusing to stay a demand notice issued to the political party for recovery of outstanding tax of more than Rs. 100 crores for the assessment year 2018-19.
However, it granted liberty to the Congress to move a fresh application for stay before the ITAT bearing in mind the developments which have occurred in the meanwhile including that of an amount of Rs.65.94 crores having been recovered by the tax authorities pursuant to encashment of the bank drafts.
The bench had added that Congress' application, if so moved, may be considered by the ITAT with due expedition.
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