The Delhi High Court has dismissed a plea by the Congress party seeking a stay on the Income Tax Department’s notice for the recovery of over ₹105 crore. The court ruled in favor of the Income Tax Department, stating that there was no ground to stay the recovery proceedings.
Background
In July 2021, the Congress party received a notice from the Income Tax Department for the recovery of ₹105.75 crore, which includes tax demand and interest for assessment years 2010-11 to 2015-16. The party approached the Delhi High Court seeking a stay on the recovery proceedings.
Court’s Ruling
The Delhi High Court bench comprising Justice Navin Chawla and Justice Jyoti Singh heard the arguments from both parties before delivering its judgment. The court observed that there was no justification for granting a stay on the recovery proceedings as it would impede the tax department’s functioning.
Justice Navin Chawla stated: “The recoveries were going ahead through attachment, auction sales and sale notices before this petition was filed.” He further added that “the ED [Enforcement Directorate] has also attached some properties.” The court denied any relief to the Congress party in this matter.
Implications
The dismissal of the plea by the Delhi High Court has significant implications for the Congress party as they will now have to comply with the Income Tax Department’s recovery notice. This could potentially affect their financial resources and operations in the days to come.
