Delhi HC reserves Congress plea against ITAT order for judgment

The IT department confirmed that they had recovered Rs 65 crore from the political party's bank accounts of the Rs 135 crore demand.

A two-judge bench of the Delhi High Court on March 12 reserved for orders  Indian National Congress' appeal challenging the Income Tax Appellate Tribunal (ITAT) order dismissing its plea seeking a stay of the IT department's lien on their bank accounts.

During the course of the hearing, the bench led by Justice Yashwant Varma observed that the court is inclined to send the case back to ITAT to reconsider whether a stay could be granted subject to deposit of 20 percent of the disputed amount. However, the bench noted that it would pass the judgment on Wednesday, March 12, in the interest of justice.

The IT department confirmed that they had recovered Rs 65 crore from the political party's bank accounts of the Rs 135 crore demand.

On March 8, the court dismissed Congress's plea seeking an IT lien on their bank accounts. After the pronouncement of the order, senior counsel Vivek Tankha, who appeared for Congress, urged the ITAT to keep the order in abeyance for 10 days to enable them to file an appeal in the High Court. Tankha argued, "Since you have dismissed the stay application, which has far-reaching consequences for the party, can I request the court to keep the order in abeyance for 10 days so that I can go to the high court?"

Delaying tactics?

The appellate tribunal, however, refused to entertain the plea noting that they are not empowered to pass such orders. In its order, the ITAT noted that the party had not shown keenness in taking its appeal to conclusion and kept taking adjournments in its appeal from September 2023.

ITAT made this observation as the assessing officer of the department had raised a demand of Rs 105 crore in July 2021. Congress appealed against the demand before the Commissioner of Income Tax (Appeals) the same year, and that appeal was dismissed in March 2023. Congress filed an appeal in ITAT in September 2023, however, it has not been argued till date.

On February 13, when the IT department decided to recover the demands that had been pending for over two years, Congress filed a stay application and sought an urgent hearing, the order noted. The order also junked the apprehension raised by the party that the recovery action was taken in undue haste.