THE NEWS FREEDOM
NEW DELHI, MARCH 22
In a major setback to the Indian National Congress (INC), the Delhi High Court dismissed INC petitions challenging the initiation of income tax reassessment proceedings for three financial years (2014-15, 2015-16, and 2016-17). The court ruled that the INC’s delay in filing the petition, coming just before the assessment deadline, did not justify intervention. However, it left open the question of whether the delay in initiating the proceedings itself could impact the validity of the assessment.
The judges noted that tax authorities had gathered “substantial and concrete evidence” warranting further scrutiny of the INC’s income under the Income Tax Act. This evidence reportedly includes details of unaccounted transactions related to past elections and disbursements to candidates.
The INC, represented by Senior Advocate Abhishek Manu Singhvi, argued that the action was “barred by limitation” as the maximum reassessment window is typically six years. The tax authorities, represented by Advocate Zoheb Hossain, countered that seized material indicated potential “escaped income” of a significant amount by the INC.