Congress Faces Rs 523 Crore Tax Demand Ahead Of Lok Sabha Elections: Report

As the Lok Sabha elections loom just weeks away, the Congress party finds itself bracing for yet another significant blow from the Income Tax Department.

A hefty demand of Rs 523.87 crore for "unaccounted transactions" spanning the years 2014 to 2021 is expected to further strain the party's financial resources.

This impending demand comes on the heels of the I-T department's recent withdrawal of Rs 135 crore from the Congress party's bank accounts, adding to its financial woes.

The unaccounted transactions were unearthed during I-T raids conducted before the 2019 Lok Sabha elections.

V K Tankha, senior Congress leader and Rajya Sabha member, expressed concerns about the anticipated penalty and interest that would likely be added to the fresh demand.

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As reported by Indian Express, Tankha stated, "Not satisfied with crippling us by withdrawing the lien amount of Rs 135 crore on the eve of general elections, a bigger setback is expected, thus crippling us further. But what is left to cripple?"

In March, the Congress party suffered setbacks in both the Income-Tax Appellate Tribunal (ITAT) and the Delhi High Court.

The ITAT had denied the party's appeal for a stay on the withdrawal of Rs 135 crore, while the Delhi High Court dismissed its challenge to the search operations conducted by the I-T department, citing delays and time-barred actions.

The Election Commission had also previously sought a CBI inquiry into the tax matter case, following simultaneous raids conducted by the I-T department in 52 locations in April 2019.

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