The Delhi High Court on Wednesday reserved its verdict on the Congress’s plea against the tax reassessment proceedings initiated against it by the Income Tax department for three successive years from 2014-15.
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“You will get the order by tomorrow [Thursday] or the day after,” a Bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav said after hearing the lawyers representing the Congress and the I-T Department.
The High Court was hearing the Congress’s pleas against reassessment proceedings for three years – 2014-15, 2015-16 and 2016-17.
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Senior advocate Abhishek Singhvi, representing the Congress, said the tax reassessment proceedings are barred by limitation and the I-T department could have gone back to a maximum of six assessment years.
On the other hand, the I-T department said there was no violation of any statutory provision by the tax authority. The I-T department said as per the material recovered, the “escaped” income by the party is more than ₹520 crore.
The Congress has also moved the High Court with separate pleas against tax reassessment proceedings initiated for four different years. The High Court has listed the case for hearing on Thursday.
Last week, the High Court had rejected the Congress plea challenging an order of the Income Tax Appellate Tribunal (ITAT) declining to stay an I-T department notice for recovery of outstanding tax of more than ₹100 crore.
The assessing officer had raised a tax demand of more than ₹100 crore for the assessment year 2018-19 when the income was assessed to be more than ₹199 crore.