I-T tribunal dismisses Congress appeal against Rs 210 crore penalty

The Income Tax Appellate Tribunal on Friday dismissed the Congress party's appeal against a penalty imposed for supposed discrepancies in tax returns for previous years, and said it was exploring all legal options and will move the high court very soon.

Sources said the tribunal dismissed the appeal of the Congress for imposition of a Rs 210 crore-penalty by the I-T department in Delhi. Congress treasurer Ajay Maken said the party is exploring all legal options and will move the high court "very soon".

"The BJP government has deliberately chosen the timing of this to coincide with national elections," Maken told PTI. He said the I-T tribunal order freezing Congress funds is "an attack on democracy" as it has come just ahead of the Lok Sabha elections.

"How can one expect fair elections in such a situation, when funds to the tune of Rs 270 crore have been frozen or taken away by income tax authorities from Congress party's accounts?" he asked.

Confirming the order, Congress legal cell head Vivek Tankha said the tribunal has not even followed its own precedents in this regard and the party will be approaching the high court soon.

"We are disappointed with the income tax appellate tribunal order. We will be moving the high court very soon. They have not followed their own precedents in granting relief on payment of 20 per cent penalty, and that too to a national party which is now on the verge of contesting national elections, which will be notified soon," Tankha told PTI.

He appeared before the tribunal on behalf of the party, appealing against the I-T order imposing a penalty worth Rs 210 crore for alleged discrepancies in I-T returns for previous years.

The Congress had earlier termed the income tax authorities' decision as "tax terrorism" ahead of general elections only to cripple the funds of the principal Opposition party.

The Congress had earlier alleged that the income tax department had "withdrawn" a sum of Rs 65 crore from its accounts in different banks "undemocratically", and claimed it had frozen another Rs 205 crore of its funds.

Maken said "democracy will be over in the country if the action of probe agencies goes unchecked" and said the Congress has full faith in the judiciary.