After High Court Setback, Congress's Next Move Over Rs 100 Crore Tax

The Congress will move the Supreme Court to cancel a Delhi High Court order that allowed a tribunal to recover over Rs 100 crore outstanding tax from the party, sources said.

The Income Tax Appellate Tribunal (ITAT) on March 8 told the Congress to pay up, after which the party went to the high court.

A high court Bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav said there was no reason to interfere with the ITAT's order.

Before the ITAT hearing, the income tax department on February 13 sent notice to the Congress to pay the tax dues for the financial year 2018-19. Tax officers had assessed income over Rs 199 crore.

The Congress's lawyer had requested the high court to give some protection, without which the party would face difficulties in managing its finances.

The tax department's lawyer told the high court that the original tax demand stood at Rs 102 crore and together with interest it rose to Rs 135.06 crore. Till now Rs 65.94 crore has been recovered, the tax department said, according to news agency PTI.

The Congress has said the tax tribunal's order freezing its funds was "an attack on democracy" as the order came just ahead of the Lok Sabha elections.