The Delhi High Court on Wednesday upheld the Income Tax Appellate Tribunal (ITAT) order rejecting Congress's application for a stay on a tax department notice for recovery of dues of more than Rs 100 crore.
"We find no ground to interfere with the (impugned) order," a division bench comprising Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav said.
However, the Delhi High Court granted liberty to Congress to move the ITAT again in case of any change of circumstances.
The IT department had issued a notice to the Congress for recovery of Rs 102 crore in outstanding tax for the assessment year 2018-19. On March 8, the Income Tax Appellate Tribunal (ITAT) dismissed the party's application seeking a stay on the notice. The Congress subsequently moved the Delhi High Court.
During the hearing, the High Court noted that the proceedings against Congress had started in 2021. "As we read this order (ITAT order), the petitioner has itself to blame. The demand is of 2021... It seems you made no efforts to securitise the demand... Someone in petitioner's office has remained asleep since 2021," the court had said.
Senior advocate Vivek Tankha, appearing for the Congress, had the High Court to grant it some relief, saying the party would collapse otherwise.
Tankha said the Lok Sabha elections were just weeks away and the party was under "tremendous pressure" as its bank accounts were frozen.
The counsel representing the I-T department said the Congress was given the option of paying 20 per cent of the tax demand in 2021.
"If the assessee does not avail the facility of depositing 20 per cent of the demand when offered, the entire amount becomes recoverable," the advocate said.
The I-T department's counsel told the court that the original tax demand was Rs 102 crore and, with interest, it now stood at Rs 135.06 crore. The counsel said Rs 65.94 crore had been recovered.
