In a recent development, the Congress party faced a setback as the Delhi High Court dismissed its petition against the Income Tax Department’s reassessment proceedings. The legal challenge, aimed at contesting the tax reassessment for four consecutive years, was rejected by the court, citing substantial evidence of unaccounted transactions in the party’s financial records.
The Delhi High Court’s bench highlighted that the Income Tax officials possessed adequate and solid evidence to initiate the reassessment proceedings. The case revolves around the reassessment of the party’s income for the fiscal years 2014-15, 2015-16, and 2016-17, with the department asserting that there is sufficient material on record to demonstrate undeclared income exceeding INR 520 crores ($67 million approx).
This is not the first time the Congress party’s petition has been rejected by the High Court. Previously, a similar plea challenging the tax department’s reassessment proceedings for a three-year period was dismissed. The party had argued against the proceedings, contending that there is a statutory time limit applicable to tax reassessment, which should not extend beyond six assessment years. Senior Congress lawyer Abhishek Singhvi had claimed that the reassessment actions were contrary to the provisions of the Income Tax Act.
Also Read
However, the Income Tax Department countered that there was no violation of any statutory provisions, insisting that the concealed income by the party amounted to more than INR 520 crores. In a recent ruling, the High Court had also refused to stay the department’s actions to recover tax dues exceeding INR 100 crores ($13 million approx), declining to interfere with the orders of the Income Tax Appellate Tribunal.
