In a striking blow to India’s main opposition party, the Congress, a tax tribunal has dismissed its plea to halt the recovery of a hefty sum of 1.35 billion rupees ($16.32 million) in income tax from its bank accounts. This development comes mere weeks before the country braces itself for national elections, casting a shadow over the party’s prospects.
Frozen last month, a segment of the Congress’ bank accounts faced the looming specter of tax recovery, tracing back to the fiscal year 2018-19. Described by the party as “a deep assault on India’s democracy,” this action has rattled the political landscape.
Vivek Tankha, a Congress lawmaker and the primary legal advocate in the case, vehemently contested the tax authorities’ assertion of late filing of income tax returns. Tankha dismissed the penalty, deeming it “disproportionate” and defending the party’s adherence to filing regulations.
However, the tribunal rebuffed Tankha’s plea, brushing aside claims of haste in the run-up to the general elections. According to the tribunal, the tax demand had been initially raised in 2021, dispelling notions of political timing.
While Congress remained tight-lipped following the tribunal’s ruling, a legal representative for the party declared intentions to contest the decision in the Delhi High Court. Moreover, the lawyer disclosed that a substantial portion of the tax amount, totaling 650 million rupees, had already been recovered, with prospects of further withdrawals looming.
The frozen accounts, Congress contends, house funds acquired through various channels, including crowd-funding initiatives and membership drives. However, this setback adds to the woes of a party grappling with dwindling support since Prime Minister Narendra Modi’s ascendancy in 2014, marking record lows in its political trajectory.
As India braces for elections, with Modi poised for a potential third consecutive term, the tribunal’s ruling amplifies the challenges confronting Congress. The political terrain awaits further turbulence as the nation awaits its electoral fate.
