The Indian National Congress Party has approached the Delhi High Court for its urgent intervention against the Income Tax Department’s move to initiate reassessment proceedings.
The court, presided over by Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, has fast-tracked the listing of the case and scheduled for hearing tomorrow.
Advocate Prasanna informed the High Court that reassessment proceedings spanning three years have been initiated against the Congress Party. This proceedings came after a recent rejection of the Congress Party’s petition by the Delhi High Court regarding the Income Tax Appellate Tribunal ( ITAT ) order.
The ITAT had dismissed the plea for a stay on the demand notice issued by the Income Tax Department, seeking recovery of nearly Rs 105 crores in outstanding taxes. The total amount sought, including interest, now stands at approximately Rs 135 crores.
The demand arises from its rejection of the Congress Party’s declaration of nil income and subsequent demand for tax payment. The department found discrepancies in the party’s income declaration and donations received, alleging violations of Section 13A of the Income Tax Act, 1961 which permits tax exemption for political parties under certain conditions.
Also ITAT order : ITR Filing by Due Date u/s 139 of Income Tax Act Is mandatory for Political Party to Claim exemption u/s 13A: ITAT Refuses to Stay Recovery Against INC
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