Delhi HC to hear Congress's appeal against ITAT order on March 12

Congress files appeal against ITAT order

A division bench of Delhi High Court on March 11 deferred the hearing Indian National Congress' appeal challenging the Income Tax Appellate Tribunal (ITAT) order dismissing its plea seeking a stay of the Income Tax (IT) department's lien on their bank accounts.

During the hearing, senior counsel Vivek Tankha, who appeared for Congress urged the court to pass a status quo order against the IT department. He told the court that the party needed funds since it is election time and there is a looming threat of the IT department withdrawing Rs 65 crore against the Rs 105 crore demand.

The bench, however, observed that they would not be able to pass the order unless they had read the files properly and thus adjourned the case. Tankha had sought an urgent hearing earlier today and the case was allotted to a division bench led by Justice Yashwant Varma.

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 high court?"

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 to take 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, the appeal was dismissed in March 2023. Congress filed an appeal in ITAT in September 2023, however, it has not been argued to 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.