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Recovery Of Rs 135 Crore From Congress As Per Income Tax Laws: Report

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Recovery of Rs 135 Crore from Congress under Income Tax Laws: Report

New Delhi:

The Congress lost income tax exemption in 2018-19 due to heavy use of cash in the election process, sources said. This justifies that the party’s tax refund of Rs 135 crore was in accordance with the provisions of the Income Tax Act.

Based on incriminating material seized by the Income Tax Department during searches, particularly in April 2019, which revealed the extensive use of cash in the electoral process, the party’s assessments were reopened for seven years (AY 2014-15 to AY 2020-21), sources said.

After the assessment, a demand was issued in 2021 and notices were sent many times to pay the demand, they said, adding that residency applications submitted by the assessor were rejected during the procedure.

Subsequently, even after 33 months of the assessment order and 10 months of the order of the Commissioner Income Tax (Appeal), when the taxpayer had failed to comply with the stated requirement, recovery proceedings were initiated under Section 226(3) of the Act undertaken, sources said. .

As a result, recovery proceedings for an amount of around Rs 135 crore of outstanding demand were initiated as per the provisions of the Act as the plea for stay was rejected by the Income Tax Appellate Tribunal (ITAT) and the Delhi High Court.

Accordingly, a recovery of Rs 135 crore has been made under the provisions of the IT Act, 1961, sources said.

However, the recovery process has not gone well in the main opposition party as Congress has termed the ministry’s move as ‘tax terrorism’.

Congress president Mallikarjun Kharge on Friday accused the BJP-led Center of misusing institutions like the Income Tax Department, ED and CBI to undermine democracy and denigrate the Constitution and wondered why the IT department is being used as a weapon to undermine the main to harass the opposition. party.

Congress leader Rahul Gandhi also lashed out at the BJP, accusing it of indulging in ‘fiscal terrorism’.

Sources, however, said the tax department’s action was taken as the Congress failed to get a reprieve from the ITAT and the Delhi High Court in the matter.

The Congress was given ample opportunity to respond, especially regarding various observations made by the Delhi High Court, and after considering all the party’s responses, the ministry has completed the seven-year review, they noted.

In another case related to the assessment year 1994-95, sources said the demand of Rs 53 crore filed by the department is pending in the Supreme Court.

(Except for the headline, this story has not been edited by WhatsNew2Day staff and is published from a syndicated feed.)

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