In a sudden turn of events, the Indian National Congress finds itself in the midst of a financial freeze as the Income Tax department reportedly froze its main bank accounts, including those of the Youth Congress. The move, initially described by Congress treasurer Ajay Maken as a blow to democratic processes, was swiftly contested, leading to relief granted by the Income Tax Appellate Tribunal.
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Income Tax: Initial Shock and Swift Response
Ajay Maken, in a press conference, expressed the Congress’s concern over the Income Tax authorities freezing its main bank accounts, citing a tax demand of ₹210 crore for the year 2018-19, an election year. Maken argued that the party filed its Income Tax return a few days late, leading to the punitive action. The freeze, affecting four main bank accounts according to Maken, was deemed a politically motivated move, considering the timing just ahead of the general elections.
Congress’s Legal Battle and Tribunal’s Intervention
Vivek Tankha, representing the Congress before the Income Tax Appellate Tribunal, confirmed that the party’s bank accounts were unfrozen after filing an appeal. Tankha emphasized that the Congress is now allowed to operate its bank accounts, marking a temporary reprieve. However, the tribunal is set to hear the matter next Wednesday before reaching a final decision, introducing an element of uncertainty.
Financial Implications and Compliance Mandate
A critical aspect of the financial freeze involves the Congress being mandated to maintain ₹115 crore in its bank accounts, untouched, as per the directive from tax authorities. This implies that while the accounts have been unfrozen, a substantial amount remains inaccessible, impacting the party’s operational capabilities. The Congress clarified that this mandated freeze accounts for more than the current balance in their accounts.
Political Allegations and Motivations
Ajay Maken’s assertion of a politically motivated move by the Income Tax department raises questions about the timing and intent behind freezing the accounts. The Congress alleges that the tax authorities’ action is an attempt to disrupt the party’s election preparations, emphasizing the potential impact on political activities just weeks before general elections are announced.
Congress Leadership’s Strong Reactions
Congress president Mallikarjun Kharge characterized the account freeze as a “deep blow to democracy” and accused the Modi government of wielding power to stifle the country’s largest opposition party. Kharge highlighted the contrast between the BJP allegedly utilizing unconstitutional funds for elections and the Congress relying on crowdfunding, which is now sealed due to the financial freeze.
Legal Context: Electoral Bonds and Supreme Court’s Judgment
The timing of this development coincides with the recent Supreme Court judgment that declared the Centre’s electoral bonds scheme unconstitutional. The Congress perceives a connection between these events, pointing out the BJP’s alleged hoarding of 90% of money raised through electoral bonds, which has been deemed unconstitutional. The broader legal context adds complexity to the unfolding narrative.
Continued Resistance and Call to Action
Senior Congress leaders, including Rahul Gandhi, have responded with resilience, vowing to continue the fight against the BJP-led government. Rahul Gandhi’s assertion that the Congress represents the “power of people” and won’t bow down before dictatorship reflects the party’s commitment to preserving democratic values.
Concerns Over Democracy and Multi-Party System
The Congress, through statements by leaders like Sachin Pilot, expresses deep concern over the potential erosion of democratic processes. Pilot labels the freezing of accounts as a “clear misuse of power” and accuses the BJP of setting a dangerous precedent by targeting opposition parties. The appeal to the judiciary to safeguard the multi-party system underscores the broader implications of such actions on India’s democratic fabric.
In conclusion
the financial freeze faced by the Indian National Congress adds a layer of complexity to the political landscape, raising questions about the intersection of financial regulations, political motivations, and the broader health of India’s democracy. As the tribunal prepares to make a final decision, the political ramifications linger, shaping the narrative in the lead-up to the impending general elections.
