New Delhi: The Delhi High Court on Thursday rejected petitions by the Congress challenging the initiation of tax reassessment proceedings against it for a period of four years by tax authorities.
A bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav said the pleas were dismissed in terms of its earlier decision refusing to interfere with the opening of reassessment for another period.
The present matter pertains to assessment years 2017 to 2021.
In the earlier petition, which was dismissed last week, the Congress party had challenged the initiation of reassessment proceedings pertaining to assessment years 2014-15 to 2016-17.
On March 22, the high court had, while rejecting those pleas, said that the tax authority had prima facie collated “substantial and concrete” evidence warranting further scrutiny and examination.
It had, however, left open the question as to whether the delay in commencement of proceedings would be fatal to the assessment.
In that petition, the Congress had contended that action under Section 153C (assessment of income of any other person) of Income Tax Act was based on searches which were conducted on four individuals in April, 2019, and was barred by limitation.
It said that on the basis of the material which was gathered in those searches, the assessing officer also drew corresponding satisfaction notes for initiation of proceedings against the Congress.
The I-T department had, however, asserted there was no violation of any statutory provision by the tax authority and that as per the material recovered, the “escaped” income of the party is more than Rs 520 crore.
Recently, the high court had also refused to interfere with the order of the Income Tax Appellate Tribunal declining to stay a notice issued by the Income Tax department to the Congress for recovery of outstanding tax of more than Rs 100 crore.
The assessing officer had raised a tax demand of more than Rs 100 crore for the assessment year 2018-19 when the income was assessed to be more than Rs 199 crore.
