Congress Moves Delhi High Court Against Tax Re-Assessment Proceedings

The Congress party has taken its grievance against tax re-assessment proceedings to the Delhi High Court. The matter was brought before a bench led by Acting Chief Justice Manmohan, who scheduled it for hearing on the following day. This move comes after the Income Tax Appellate Tribunal refused to stay a notice issued by the Income Tax department to the Congress for the recovery of outstanding tax exceeding Rs 100 crore. The tax demand was raised by the assessing officer for the assessment year 2018-19, where the party’s income was assessed to be over Rs 199 crore.

Key Points:

1. Legal Challenge: The Congress party has initiated legal action against tax re-assessment proceedings conducted by the authorities, signaling a dispute over tax demands.
2. Court Appearance: The matter was presented before a bench headed by Acting Chief Justice Manmohan, who agreed to hear the case on the following day.
3. Judicial Response: The bench, also comprising Justice Manmeet PS Arora, stated that if in order, the case would be listed for hearing the next day, emphasizing the urgency of the matter.
4. Previous Decision: Earlier, the Delhi High Court declined to intervene in the order of the Income Tax Appellate Tribunal, which refused to stay a notice issued to the Congress for the recovery of outstanding tax exceeding Rs 100 crore.
5. Tax Demand: The assessing officer had raised a tax demand of more than Rs 100 crore for the assessment year 2018-19, based on an assessed income of over Rs 199 crore for the Congress party.

Conclusion: The Congress party’s decision to approach the Delhi High Court underscores its challenge against tax re-assessment proceedings initiated by the authorities. The court’s readiness to expedite the hearing indicates the significance of the dispute, which revolves around the substantial tax demand imposed on the party for the assessment year 2018-19.

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