I-T dept freezes Congress’ accounts, Tribunal grants relief
A day after the Supreme Court scrapped electoral bonds, the Congress party faced a temporary hurdle when the Income Tax department froze its main bank accounts, including those of the Youth Congress. The action arose from a pending tax demand of Rs 210 crore.
However, the measure turned out to be temporary as the party quickly challenged the Income Tax order and the relief was granted by the Income Tax Appellate Tribunal by de-freezing the accounts until final hearing next week.
In a clarification, the Congress said that the party is mandated to ensure that a sum of Rs. 115 crore has to be maintained in their bank accounts. The amount has to remain untouched in compliance with the directive from the tax authorities, implying a freeze on these funds. “This means that Rs 115 crore has been frozen. This Rs 115 crore is much more than we have in our current accounts,’’ the party said.
In a post on X, Congress leader Ajay Maken shared the two notices that the party received from I-T department: “Two Notices- 1st to AICC bankers, and the 2nd to IYC Bankers;
“A sum of Rs.135,06,88,984/-…(+ ₹75, 17, 97, 015/- for IYC bank account) is due from the Indian National Congress”
“You are hereby required under Section 226(3) of the Income-tax Act, 1961, to pay to me forthwith any amount due from you to or, held by you, for or on account of Bank Account No. 062304xxxxx and any other bank account/ fixed deposit with your bank in the name of Indian National Congress upto the amount of arrears shown above” All Our bankers are being sent this...
Is this not attaching/ seizing / freezing our accounts?”
Maken described the move as a “disturbing blow to the democratic process”. The Congress alleged that the move is “politically motivated’’ and timed to disrupt the party’s poll preparations.