First Congress got a shock from the High Court, then the Income Tax Department gave a notice of Rs 1700 crore

Last Thursday was not very good for Congress. First the Delhi High Court rejected the party’s petition, after which today the Income Tax Department has given a notice of Rs 1700 crore. With this, Congress’s problems have increased in view of the Lok Sabha elections. The new demand notice of the Income Tax Department is for 2017-18 to 2020-21. This includes both fine and interest from the department. According to the information, this amount may still increase. The Income Tax Department is waiting for the revaluation of income from 2021-22 to 2024-25. Its cutoff date will be completed on Sunday.

High Court rejected the petitions

The Delhi High Court on Thursday dismissed Congress’ pleas challenging the initiation of tax revaluation proceedings against it by the Income Tax authorities for a period of four years. A bench of Justices Yashwant Verma and Purushendra Kumar Kaurav said that the petitions are dismissed in accordance with its earlier decision refusing to interfere in starting the revaluation for another year. The present matter pertains to valuation from the year 2017 to 2021. In another petition rejected last week, Congress had challenged the initiation of revaluation proceedings relating to valuation years 2014-15 to 2016-17.

Income Tax has sufficient and solid evidence

On March 22, the High Court had rejected those arguments, saying that the Income Tax Department had prima facie collected “sufficient and solid” evidence, which needed further investigation. However, this raised questions whether a delay in initiating proceedings would be detrimental to valuations. In that petition, the Congress had said in its defense that the action under section 153C (assessment of income of another person) of the Income Tax Act was based on investigations that were conducted on 4 people in April, 2019 and it was based on a certain Was beyond the time limit.

Demand for Rs 100 crore tax

Recently, the High Court also refused to interfere with the Income Tax Appellate Tribunal order refusing to stay the notice issued to the Congress by the Income Tax Department for recovery of outstanding tax of more than Rs 100 crore. was declined. The income tax assessing officer had demanded tax of over Rs 100 crore for the year 2018-19, when the party’s income was estimated at over Rs 199 crore.