Congress party's plea to stay IT action against its bank accounts dismissed

The Income Tax Appellate Tribunal (ITAT) has rejected a plea filed by the Congress Party seeking a stay on Income Tax Department proceedings to recover dues and freeze their bank accounts. Senior counsel Vivek Tankha, representing the Congress Party, urged the ITAT to suspend the order for ten days to allow them to appeal in the High Court. Tankha emphasised the significant consequences of the decision for the party's financial affairs, stating, "Since you have dismissed the stay application, which has far-reaching consequences for the party. Can I request the court to keep the order in abeyance for 10 days so that I can go to high court?"

ITAT refuses entertain plea

However, the appellate tribunal refused to entertain the plea, citing their lack of authority to issue such orders.

Background of the case

The stay application was related to the IT department's demand of Rs 210 crore, raised in connection with the income tax return from 2018–19. Congress argued that the lien on their bank account severely affected their financial position, especially with the upcoming general elections on the horizon.

Arguments presented

During the hearing on February 22, Tankha argued that the party was financially constrained, particularly with the need to fund its election campaign. He highlighted the significant expenses involved in contesting elections, with each candidate allowed to spend up to Rs 95 lakh under the Representation of Peoples Act, 1951.

IT department's response

The IT department argued on February 21 that the demand would not hinder Congress's electoral activities, citing the party's substantial financial resources.

Previous allegations and clarifications

On February 16, Congress treasurer Ajay Maken alleged that the party's bank accounts were frozen, with a demand of Rs 210 crore raised by the IT department. However, Tankha later clarified that the ITAT had permitted Congress to operate the bank accounts, albeit with a lien.