GUWAHATI: The Delhi High Court dealt yet another blow to the Congress on March 28 when it rejected its petitions challenging the reassessment proceedings initiated by the Income Tax department for four years.
The court had earlier rejected three of the party’s seven petitions.
According to reports, with all seven petitions now rejected, the Congress could face a tax demand of more than ₹500 crore for “unaccounted transactions” between the period 2014-2021.
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Last week, on March 22, the high court rejected the petitions challenging reassessment proceedings initiated for three years (2014-15, 2015-16 and 2016-17) by the Income Tax department, which is seeking to conclude the ongoing reassessment for seven financial years (2013-14 to 2020-21) by March 31.
A Division Bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav while dismissing the four last petitions noted that it is covered by the High Court's earlier order rejecting the three petitions.
In the previous order, the bench had noted that on a prima facie examination, it was evident that the Income Tax department appears to have collated substantial and concrete evidence warranting further scrutiny and examination under the I-T Act.
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”We consequently find no justification to interdict the assessment proceedings at this belated stage by invoking our jurisdiction under Article 226 of the Constitution. However, whether the asserted delay in commencement of proceedings would be fatal to the assessment itself is a question that we leave open to be urged at an appropriate juncture,” the court said.
The high court bench noted that the assessing officer makes detailed references to unaccounted transactions with respect to the Lok Sabha Elections of 2019 and MP Assembly Elections of 2018 and 2013. The said note also carries material seeming to suggest payments and contributions made by government departments and corporations, liquor manufacturers, industry entities and individuals to Congress.
