No freeze on Congress’ bank accounts, only lien: Income Tax department tells ITAT.
The Income Tax department on February 16 told the Income Tax Appellate Tribunal (ITAT) that it has not issued an order to banks for freezing the transactions in Congress’ bank accounts, the order of the tribunal read.
The ITAT order further stated that the department has only created a lien (a legal right) on the amount in the accounts to settle the pending tax demand. A lien refers to a claim or a legal right against an asset, which is usually used as collateral until the claim is paid.
The ITAT order said, “On hearing both sides, it comes up from the learned Special Counsel for the Revenue, that the Revenue (IT) does not claim to have issued any order or direction to the concerned bank(s) for freezing the transactions in the bank account(s), but only for a lien on the amount lying in the bank account(s) upto the outstanding tax demand.”
The department has sought time from the ITAT to file a status report in this regard. According to the order, senior counsel and Congress leader Vivek Tankha told the ITAT that he needed an opportunity to appear in-person for an extensive hearing and, sought a stay of the order attaching the party’s bank accounts. Tankha, who is presently out of the station, appeared in the ITAT virtually.
Earlier on February 16, Tankha said that the ITAT had permitted Congress to operate the bank account noting that there will be only a lien on them. According to the Congress leader, the case will now be heard at length on merits on February 21.
According to Tankha, the case was heard by the first bench of ITAT in Delhi. In a video on social media platform X, 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.
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.