In a huge setback to the Congress ahead of the Lok Sabha elections, the Delhi High Court on Friday rejected its pleas challenging the reassessment proceedings initiated against it by the Income Tax department.
The court said the I-T department “appears to have collated substantial and concrete evidence warranting further scrutiny and examination”.
The High Court also commented that the national party has “chosen to approach this court only a few days before the time for completion of assessment would expire and at the proverbial fag end of the proceedings”.
The Congress has challenged initiation of proceedings under Section 153C (assessment of income of any other person) of the Income Tax Act for assessment pertaining to assessment years (AYs) 2014-15 to 2016-17.
Its counsel argued that assessment under Section 153C of the Act could have at best covered the period of AYs 2017-18 to 2020-21 and the three additional AYs 2014-15, 2015-16 and 2016-17 would be barred by limitation.
The I-T department, on the other hand, asserted there was no violation of any statutory provision and cumulative figure attributed to income from AYs 2014-15 to 2020-21 which has allegedly escaped assessment would stand at approximately ₹520 crore.
Satisfaction note
The court noted while the notice was issued to the party by the I-T department on March 7, 2023, the satisfaction note by the assessing officer (AO) appeared to have been provided to the petitioner on June 28 and 30, 2023.
It said the party challenged the assessment proceedings at a belated stage as it is to be completed by March 31, 2024. The Congress filed the petitions only on March 19, the court said.
Last week, the High Court had refused to interfere with the order of the Income Tax Appellate Tribunal declining to stay a notice issued by the Income Tax department to the Congress for the recovery of outstanding tax of more than ₹100 crore.
