NEW DELHI: The income tax department has completed the reassessment of Congress party‘s returns for seven years, sources said on Friday, while maintaining that the principal opposition party had been given ample chance to respond and all material related to the exercise was also shared.
“All along they were aware of what was going on, but they chose to move when the deadline was fast approaching and sought to make a political issue out of it,” said a source.The reassessment had to be completed by March 31.
The comments came a day after tax authorities issued a demand of over Rs 1,800 crore based on reassessment for four years: 2017-18 to 2020-21.
The entire exercise – based on alleged cash payments which were revealed during searches on entities in Madhya Pradesh, Karnataka, Andhra Pradesh and Gujarat – covered seven financial years starting assessment year 2014-15 (financial year 2013-14).
‘I-T dept ensured that principle of natural justice is followed’
Responding to Congress’ claims of govt unleashing ‘tax terrorism’, an income-tax dept source said, “The department always ensures that the principle of natural justice is followed and provides all material to the taxpayer based on which the department intends to make additions in the hands of the taxpayer. The same process has also been adopted in case of Congress. All the evidence available with the department was given to Congress.”
Sources said the entire exercise was done in accordance with laid down legal provisions and involved going through the entire evidence before reassessment proceedings were initiated and even during the exercise.
The reassessment was based on “incriminating material” seized during search operations in April 2019, which pointed to extensive use of cash in the electoral process.
Some of the evidence was also presented before Delhi high court, which was hearing writ petitions filed by Congress against income tax department’s move.
The court issued two orders and in the first one relied on evidence presented before it in sealed cover, running into 300 pages, which included details of alleged cash transactions, including transfers made to Congress headquarters on Akbar Road and also to certain party functionaries.
The data was allegedly collected from associates of former MP chief minister Kamal Nath as well as evidence found during searches on Megha Engineering, whose name figured prominently in electoral bonds list. Tax department had told the court that at least Rs 524 crore may have escaped assessment.
Delhi HC had dismissed the petitions and held that tax department has substantial and concrete evidence warranting further scrutiny and examination under the law.
It also observed that the ‘satisfaction note’ detailed unaccounted transactions and that Congress failed to establish that the material basis of the ‘satisfaction note’ is not founded on any material evidence or documentation.
“All along they were aware of what was going on, but they chose to move when the deadline was fast approaching and sought to make a political issue out of it,” said a source.The reassessment had to be completed by March 31.
The comments came a day after tax authorities issued a demand of over Rs 1,800 crore based on reassessment for four years: 2017-18 to 2020-21.
The entire exercise – based on alleged cash payments which were revealed during searches on entities in Madhya Pradesh, Karnataka, Andhra Pradesh and Gujarat – covered seven financial years starting assessment year 2014-15 (financial year 2013-14).
‘I-T dept ensured that principle of natural justice is followed’
Responding to Congress’ claims of govt unleashing ‘tax terrorism’, an income-tax dept source said, “The department always ensures that the principle of natural justice is followed and provides all material to the taxpayer based on which the department intends to make additions in the hands of the taxpayer. The same process has also been adopted in case of Congress. All the evidence available with the department was given to Congress.”
Sources said the entire exercise was done in accordance with laid down legal provisions and involved going through the entire evidence before reassessment proceedings were initiated and even during the exercise.
The reassessment was based on “incriminating material” seized during search operations in April 2019, which pointed to extensive use of cash in the electoral process.
Some of the evidence was also presented before Delhi high court, which was hearing writ petitions filed by Congress against income tax department’s move.
The court issued two orders and in the first one relied on evidence presented before it in sealed cover, running into 300 pages, which included details of alleged cash transactions, including transfers made to Congress headquarters on Akbar Road and also to certain party functionaries.
The data was allegedly collected from associates of former MP chief minister Kamal Nath as well as evidence found during searches on Megha Engineering, whose name figured prominently in electoral bonds list. Tax department had told the court that at least Rs 524 crore may have escaped assessment.
Delhi HC had dismissed the petitions and held that tax department has substantial and concrete evidence warranting further scrutiny and examination under the law.
It also observed that the ‘satisfaction note’ detailed unaccounted transactions and that Congress failed to establish that the material basis of the ‘satisfaction note’ is not founded on any material evidence or documentation.
