The Income Tax Department has seized the control of four Congress bank accounts. On Friday, Congress Treasurer Ajay Maken disclosed that their party's bank accounts have been frozen. The Youth Congress account is also under the freeze. Maken expressed, 'We're stalled, without funds to cover our electricity bills or pay our staff. Our political activities, not just the Justice Journey, are all taking a hit. The Income Tax Department has ordered a whopping recovery of 210 Crore INR. Yet, the IT Tribunal has since lifted the freeze until next Wednesday. Let's delve into the actions taken by the department in these past cases.
A disheartening and disappointing piece of news arrived early this morning. It's shocking and saddening that democracy has been completely eradicated, encased in a lockdown. A couple of days ago, we were informed that the checks we'd been issuing were not being cleared by the bank. Upon investigation, we discovered that all bank accounts of the nation's leading opposition party had been frozen. It's not just the Congress party's accounts that have been frozen; it's our country's democracy that's on ice.
'How much penalty has the Income Tax Department imposed?'
The Income Tax Department has frozen the accounts tied to Congress and the Youth Congress. The information regarding frozen accounts surfaced two days ago. Following this, the Youth Congress account faced a freeze on Thursday evening. A demand for a recovery of 210 Crore INR has been issued for these frozen accounts. This means Congress has to pay this amount as a penalty to the Income Tax Department.
What led to the freezing of accounts?
This entire situation pertains to the income tax return for the fiscal year 2018-2019. The Income Tax Department has demanded a penalty of 210 Crore INR from Congress. According to Maken, there are two reasons for this action. The first - we were supposed to submit our account details to the Tax Department by December 31, 2019. We filed the return around 40-45 days late. Generally, people do tend to get 10-15 days late. The second reason is that the fiscal year 2018-19 was an election year. During that election year, Congress spent a total of 199 Crore INR. Out of that, 14 Lakh 40 Thousand INR was contributed in cash by Congress MPs and MLAs as a part of their salary. Due to the cash influx, the Income Tax Department levied a penalty of 210 Crore INR on Congress.
'What has been affected by the account freeze?'
Maken revealed that the account freeze has severely hampered Congress's functionality. We lack the resources to pay for electricity, salaries, and even cannot deposit or withdraw from the bank. Other programs of Congress are also being affected.
'What will Congress do now?'
Maken said they've been penalized five years after filing their tax return. The party has contacted the Income Tax Appellate Tribunal (ITAT) for defreezing the bank accounts. We have filed a petition with the Income Tax Appellate Tribunal, and it is being heard. We trust that our judiciary will protect democracy. Congress will take this fight to the streets.
'Where did the money in Congress's bank accounts come from?'
Maken further stated Congress collected approximately 25 Crore INR by going to the people. 95 percent of that money came from individuals who donated less than 100 INR through UPI. The funds in the Youth Congress account are accrued through membership. This money has been frozen by the Income Tax Department. On the other hand, the Supreme Court has declared corporate bonds funds as unconstitutional. That money is with the BJP, and they are spending it. Our funds were raised through online donations and crowdfunding.
What relief has the IT Tribunal provided to Congress?
However, Congress has received significant relief from the IT Tribunal. The Income Tax Appellate Authority (ITAT) has lifted the freeze. On behalf of Congress, senior advocate Vivek Tankha presented the case to the IT Tribunal, highlighting that Congress is the primary opposition party and elections are approaching. With the account freeze, all operations are being impacted. Thus, it was requested that Congress's accounts be defrosted. As an initial relief measure, the tribunal removed the freeze from the accounts until next Wednesday. The matter will be further heard on Wednesday. The tribunal has allowed Congress to transact from its bank accounts until the hearing, but the Income Tax Department must be informed about any transactions related to the amount. Now, clarity on whether Congress will have to pay the 210 Crore INR penalty will come only after the tribunal's hearing.
