Congress gets breather, tax tribunal says the party can operate ‘frozen’ accounts

Hours after the Congress party said that its four primary accounts belonging to the main party and Youth Congress have been frozen, the tax tribunal on Friday said there were no restrictions on the party accessing its bank accounts. The party had filed an appeal before the Income Tax Appellate Tribunal (ITAT) in Delhi requesting it to defreeze the accounts.

Earlier in the day, Congress Treasurer Ajay Maken said the bank accounts have been frozen as the Income Tax department is demanding a Rs 210 crore recovery for FY 2018-19. The accounts, including that of the Indian Youth Congress, were frozen on an Income Tax demand of Rs 210 crore for 2018-19, an election year, Maken noted.

He added that Congress had filed its Income Tax return for the concerned year 45 days late and that is why this action was taken. 

Alleging that democracy in India has completely ended, Maken said he got an intimation about the development two days ago. The party reportedly had received information that the banks were not honouring the cheques that the party was issuing. When the party inquired about the matter, it was allegedly told that all the accounts were frozen. “Congress party’s accounts have been frozen… Democracy has been frozen,” Maken said.

The Congress leader said that the party has taken legal action in response to the freeze, with the matter currently before the income tax appellate tribunal.

The senior leader asserted that the timing of the financial freeze, instituted just prior to the pivotal general elections, provokes uncertainties regarding the intent behind these actions undertaken by The Income Tax Department.

"Right now, we have no money to spend. Electricity bills, staff salaries, our Nyay yatra, everything is impacted. Look at the timing; this is clear," he said. "We have only one PAN, and the four accounts are all linked."

Congress president Mallikarjun Kharge voiced his concern. He stated, "Intoxicated with power, the Modi government has frozen the accounts of the country's largest opposition party - the Indian National Congress - just before the Lok Sabha elections. This is a deep blow to democracy."