The Congress leadership alleges that the party’s bank accounts have been blocked, prompting Kerala Pradesh Congress Committee (KPCC) acting President MM Hassan to initiate a crowdfunding effort on Saturday to gather funds for their election campaign management.
In a video, Hassan was observed visiting shops in Thiruvananthapuram with a bucket, seeking contributions. He stated that the funds would be utilized for overseeing the election campaigning in the state in preparation for the Lok Sabha elections.
#WATCH | Thiruvananthapuram: Kerala Pradesh Congress Committee (KPCC) acting president MM Hassan takes part in the party’s crowdfunding drive to manage the poll campaign, in view of the dearth of funds. pic.twitter.com/G22QODzI7g
— ANI (@ANI) April 6, 2024
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Claiming that the bank accounts of the Congress party have been frozen by the government of Prime Minister Narendra Modi, Hassan stated that KPCC and All India Congress Committee (AICC) have decided to approach the common people and seek their support for election work.
Hassan stated that he and the party workers were heading out for street collections to fund the election work of local workers. The Congress party revealed on Friday that its bank accounts had been frozen owing to a Rs 210 crore income tax demand dispute, just months before the national elections.
The party denounced the action as “a severe assault on India’s democracy,” noting that an income tax tribunal had permitted partial operation of its accounts until February 21. Meanwhile, Former Congress President Sonia Gandhi criticized PM Modi, alleging that this was part of “PM’s systematic effort to cripple Congress.”
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Congress Treasurer Ajay Maken informed reporters that the party had lodged a complaint against the tax department after it instructed banks to freeze funds in its accounts.
Shortly after Congress Treasurer Ajay Maken’s statement about the freezing of the party’s bank accounts, the tax tribunal stated that there were no restrictions on the party accessing its bank accounts. This development was confirmed by Vivek Tankha, Rajya Sabha MP and lawyer, who stated that he represented the Congress party before the Income Tax Appellate Tribunal bench of Delhi.
Reason behind all this
The Congress party is entangled in a contentious income tax dispute with the I-T Department concerning tax claims for the assessment year (AY) 2018-19. Initially, a claim of Rs 103 crore was lodged, which was subsequently revised to Rs 105 crore. However, with the addition of Rs 30 crore as interest, the claim escalated to Rs 135 crores.
The IT Department issued its initial notice to the Congress party on July 6, 2021, providing them with a 30-day deadline to settle their dues. However, no response was forthcoming. A subsequent notice was dispatched on October 28, 2021, offering the party the option to clear 20 per cent of the outstanding amount.
According to legal requirements, the Congress party was obligated to pay one-fifth of the pending amount while their appeal was under review by the IT Commissioner. However, upon the party’s failure to comply, the IT Department insisted on the full sum being paid.
In the fiscal year 2021-22, the IT Commissioner rejected Congress’s appeal against the IT Department’s notice. Unfortunately, subsequent notices issued by the department in 2023 were also essentially disregarded. Finally, in May 2023, the party lodged an appeal against the IT Commissioner’s decision in the Income Tax Appellate Tribunal (ITAT).
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