Congress Moves Delhi High Court Against Tax Re-assessment Proceedings

On Tuesday, the Congress party took its grievances to the Delhi High Court, contesting tax re-assessment proceedings initiated by the authorities. 

The party's counsel brought up the matter before a bench led by Acting Chief Justice Manmohan, who consented to schedule it for a hearing on Wednesday. "If in order, list tomorrow," the bench, which also includes Justice Manmeet PS Arora, remarked.

Recently, Delhi High Court affirmed a decision by the Income Tax Appellate Tribunal (ITAT) denying a stay on a notice issued by the Income Tax department to the Congress party, seeking recovery of over Rs 100 crore in outstanding tax. Justices Yashwant Varma and Purushaindra Kumar Kaurav, presiding over the bench, found no grounds to intervene with the ITAT's March 8 ruling.

After hearing arguments from both the Congress and the Income Tax (I-T) department, the bench, which had reserved its order on Tuesday, reached a decision.

The Congress had appealed to the high court following the dismissal by the ITAT of its plea for a stay on the I-T department's February 13 notice, initiating recovery proceedings. The assessing officer had imposed a tax demand exceeding Rs 100 crore for the 2018-19 assessment year, based on an income assessment of over Rs 199 crore. The Congress' legal representative had implored the court to provide some safeguard, expressing concerns that without it, the party would face severe repercussions.