Home Political Congress Decries ‘Tax Terrorism’ Amid ₹1,700 Crore Notice from Income Tax Department

Congress Decries ‘Tax Terrorism’ Amid ₹1,700 Crore Notice from Income Tax Department


The Congress party is in the middle of a financial dispute after receiving a new notice from the Income Tax Department for ₹1,700 crore, which includes interest and penalties for assessment years 2017–18 to 2020–21. This comes after the party’s suit contesting earlier tax notices was dismissed by the Delhi High Court.

The Congress, which is already facing financial difficulties as a result of an Income Tax authorities’ ₹200 crore fine and seized accounts, voices its displeasure by referring to the circumstances as “tax terrorism.” Members of the party charge that the BJP is using the tax authorities to financially impose restrictions on them, particularly in the lead-up to the next Lok Sabha elections that are scheduled to begin on April 19.

Congressman Jairam Ramesh denounces the warnings as a calculated attempt to undermine the party’s financial stability. He claims that these strategies are an assault on the democratic process and demands an immediate end to them.

The Income Tax agency had demanded ₹200 crore in arrears earlier in February after finding inconsistencies in the party’s tax filings. The problem was made worse when the Income Tax Appellate Tribunal (ITAT) froze the party’s accounts.

The ITAT’s decision to freeze its money is portrayed by the Congress as a serious setback to democracy, especially considering the timing of the decision, which is close to the Lok Sabha elections. The party’s legal fights, such as its fruitless attempts to appeal tax reassessment proceedings in the Delhi High Court, highlight the growing political unrest related to financial concerns.

In view of previous court interventions like the Supreme Court’s decision against electoral bonds, this financial quandary within the Congress complicates the conversation over political party finance. Concerns about accountability and transparency have gained attention as a result of the invalidated electoral bonds, which made it easier for people to make anonymous contributions to political parties.

The Congress’s financial difficulties have wider ramifications that go beyond the current political sphere and affect basic ideas of democratic governance and financial integrity in political processes as it gets ready to negotiate these choppy waters.

The party’s determination to combat what it views as “tax terrorism” demonstrates how important it is to safeguard its financial independence and make sure that all candidates are treated fairly in the electoral process. The Congress’s position in the face of growing difficulties is consistent with wider worries about the abuse of the state machinery for political purposes, emphasising the need for increased accountability and openness in the field of political financing.

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