Tax department could demand ₹500 crore from Congress in reassessment order: Report.
The Income Tax department is expected to issue a reassessment order for the assessment years spanning from 2014-15 to 2020-21 by March 31 in the matter of Indian National Congress (INC), Business Line reported.
A number of reports suggest that the demand could be more than ₹500 crore post reassessment.
For assessment year 2018-19 ₹135 crore has already been recovered from the Grand Old Party. Besides, the next date of hearing for notice related assessment year 1994-95 in the Supreme Court is April 1.
Until then, Congress has not got relief in litigations filed before various quasi-judicial bodies and courts.
Quoting sources, the Business Line reported that on the basis of various searches related to INC, reassessment proceedings under section 153C (Assessment of income of any other person.) of Income Tax Act were initiated for AYs 2014-15 to 2020-21.
“During the entire proceedings, Congress has not provided a reply on merits. Each objection raised was duly disposed of,” a source told the newspaper.
Pending matters
The Congress party has already filed writ petitions against the proceedings of all the seven years. Out of these seven years, hearings have culminated in the case of AY 14-15, 15-16, and 16-17. In fact, the order is also reserved by the Delhi High Court.
And for the remaining four years, the date of hearing is to be notified soon. Talking about notice for AY 1994-95 (FY 1993-94), the national party has moved the Supreme Court and next date of hearing is April 1.
“Appeal effect of the said order was given creating a demand (tax plus interest) of around ₹53 crore,” a source added.
It is worth recalling that the issue first surfaced because of demand raised for AY 2018-19. On July 6, 2021, assessment order of AY 19 was passed creating a demand of ₹105.17 crore, as per the sources.
Without paying the required 20 per cent of the disputed demand in full, the INC filed an appeal before CIT (Appeal). However, it was dismissed as the required amount was not deposited.
Now, a notice of recovery was served on the Congress party and the measures were undertaken to recover demand of around ₹135 crore (which includes tax as well as interest).