Congress can operate bank accounts, says MP Tankha hours after freeze over tax demand

Congress has been allowed to operate bank accounts by Income Tax Appellate Tribunal

Hours after claiming that its bank accounts have been frozen over an income tax demand of Rs 210 crore, the Congress said that the authorities have allowed the party to operate the accounts.

Congress Rajya Sabha MP Vivek Tankha said on February 16 that the Income Tax Appellate Tribunal has “graciously” said that there will be only a lien and the party could operate the bank accounts. According to the Congress leader, the case will now be heard at length on merits on February 21.

Congress treasurer and senior leader Ajay Maken alleged on February 16 that the four bank accounts of the party and the Youth Congress have been frozen by the Income Tax Department, and a demand of Rs 210 crore has been raised in connection with the income tax return case of 2018-19.

According to Tankha, the case was heard by the first bench of ITAT in Delhi. In video, Tankha said he had urged the tribunal to give some relief to the Congress party as it would not be able to spend money for any of the planned campaign activities for the upcoming general  elections if the freeze continues.

In the video Tankha said that he had argued before the tribunal that Congress has a very good case on facts and the party had filed their return on time and the whole issue has been misconstrued. He claimed that the party has spent well within the permissible limit in 2018-19. Tankha said "I asked the tribunal to protect the party and protect democracy."

ITAT is the second appellate authority under the Income Tax act, 1961 after commissioner of appeals. An appeal against the order of ITAT lies at the Delhi HC.

According to the ITAT's website, the case was listed before a bench comprising vice president G.S.Pannu and judicial member Anubhav Sharma. Congress had filed a stay application against the freezing order on February 14.