The Congress on Friday termed as “tax terrorism” a fresh notice from the Income Tax department to pay ₹1,823.08 crore after it had already paid ₹135 crore towards a previous demand that had been raised by the department. Besides the Congress, IT Department has also proceeded against two Left parties – the CPI(M) and CPI.

The Congress said it will seek refuge in the courts against this “move to cripple us during elections” by the BJP-led government and claimed that the ruling party itself is guilty of violating the Representation of People Act and the Income Tax Act because it has not submitted details of donations to the Election Commission as is mandated by the law.

Rahul Gandhi said about the fresh notices: “When the government changes, action will definitely be taken against those who are destroying democracy. And the action will be taken in such a manner that no one will have the courage to do all this again. This is my guarantee.”

Congress treasurer Ajay Maken said he had calculated the donation violations by the BJP from financial year 2016-17 to 2022-23 and the entire demand should come up to ₹4,617.58 crore. “We will file a PIL to pray to the court that the BJP be asked to pay up this demand,” said Maken.

The fresh notices start from assessment year 1993-94 for which a demand of ₹53.9 crore has been raised. For AY 2016-17, ₹181.99 crore demand has been raised. For AY 2017-18, a demand of ₹178.73 crore has been raised. For AY 2018-19 and AY 2019-20, a demand of ₹918.45 crore and ₹490.01 crore has been raised. Cumulatively, what the Congress needs to pay is ₹1,823.08 crore.

“I am sure we will get relief from the courts. But let no one be in any doubt that the intent behind raising this kind of demand through tax notices is to cripple the principal opposition party in the midst of the elections. This is tax terrorism, plain and simple,” said Congress leader Jairam Ramesh.

Left parties too targeted

After Maken said similar action is being taken against other opposition parties as well, businessline spoke to Prakash Karat, former general secretary and politburo member of the CPI(M), to verify the assertion.

“The CPI(M) had its tax exemption withdrawn for the year 2016-17 and ordered to pay a tax of ₹15.59 crore for the mere technical lapse of not listing one of the hundreds of bank accounts that the Party has all over the country. The CPI(M) went to the Delhi High Court against this unwarranted action and the matter is sub-judice at the moment,” Karat said.

So far as the CPI is concerned, the Tax Department is penalising it for some of its state units for an old PAN card. “We, too, have gone to the court. It’s a small technical oversight. We are using a new PAN card whereas some of our State units were using an old PAN card. For that a penalty has been imposed on us. We are contesting it in court,” a senior CPI leader told businessline.

Related Topics