Income Tax dept freezes Congress accounts, appellate tribunal de-freezes them

Party leader Vivek Tankha, who appeared before the tribunal against the order, said the party was now allowed to operate its bank accounts. The tribunal will hear the matter next Wednesday before a final decision is taken on the matter.

New Delhi: Calling it a “deep assault” on the country's democracy, the Congress on Friday said its nine bank accounts have been frozen by the Income Tax Department on “flimsy grounds” after raising a tax demand of Rs 210 crore for 2018-19.

On a petition filed by the Congress, the Income Tax Appellate Tribunal (ITAT) allowed the party to operate the accounts but after maintaining Rs 115 crore in its accounts. Congress said its accounts do not have that much money.

Congress Treasurer Ajay Maken posted on ‘X’, “this 115 crore is the lien marked in the bank accounts. We can spend an amount over and above that. This means that Rs 115 crore have been frozen. This Rs 115 crores is much more than we have in our current accounts.”

Ahead of the ITAT hearing, Maken told a press conference that four accounts in Bank of Baroda and Canara Bank were frozen while Congress sources later put the number at nine.

Youth Congress activists led by its president B V Srinivas staged a protest near Parliament on the issue, while state units will be holding protests outside IT offices on Saturday.

Maken said the IT Department has raised the tax notice on the grounds of a delay of 40-45 days in submitting returns for 2018-19 and Rs 14.40 lakh contributed by MPs and MLAs in cash in that fiscal. In 2018-19, he said, the total receipts of Congress was around Rs 199 crore.

A combative Congress led by its president Mallikarjun Kharge and former chief Rahul Gandhi questioned the timing of the IT action that came weeks ahead of Lok Sabha election while insisting that they will never bow down before “dictatorship”.

Kharge said, “power drunk” Modi government has frozen the accounts of “the country’s largest opposition party just before the Lok Sabha elections” and called it a “deep assault on India’s democracy”.

Referring to the scrapping of electoral bonds by the Supreme Court, he said the “unconstitutional money” collected by the BJP would be utilised by them for elections but the money collected by the Congress through crowdfunding “shall be sealed”.

“That is why I have said that there won't be any elections in the future. We appeal to the judiciary to save the multi-party system in this country and protect India’s democracy. We will take to the streets and fight strongly against this autocracy!” he posted on ‘X’.

Rahul Gandhi, who is currently leading the Bharat Jodo Nyay Yatra, posted on 'X', “don't be scared Modi-ji, Congress is not the name of money power but the name of power of people. We have never bowed down before dictatorship, nor will we ever bow down. Every Congress worker will fight tooth and nail to protect India's democracy.”

Maken said the accounts of Congress and Youth Congress among others were frozen. “It is not just our accounts but Indian democracy is frozen. When the accounts of the main opposition party are frozen just two weeks before the announcement of the Lok Sabha election, do you think democracy is alive in this country?” he asked.

Alleging that the BJP wants a one-party rule in the country, Maken said it is the first time in history that such a development has happened. “We are not in a position to pay our electricity bills, salaries...everything is impacted,” he added.