“CPI Received Income Tax Notice For Use Of Old PAN Card,” Says D Raja

The Communist Party of India (CPI) received a notice from the Income Tax Department sometime back regarding some discrepancies due to the use of old PAN cards by some state units of the Communist Party of India, said General Secretary of CPI, D Raja.

“We have received the income tax notice for the use of the old PAN card,” CPI leader D Raja said to ANI.

On being asked if the party received any notice from IT in regard to a particular amount, Mr Raja, clarified, saying, “They did not receive any notice from IT in regard to money.”

The development comes as the Income Tax Department issued a demand notice of about Rs 1700 crore to Congress, sources said. They said the fresh demand notice is for assessment years 2017-18 to 2020-21 and includes penalties and interest.

The Delhi High Court had earlier this week dismissed the party’s plea, challenging the Income Tax Department’s order opening reassessment proceedings against it for 2017-18, 2018-19, 2019-20, and 2020-21.

Congress will stage a nationwide protest on Saturday against notices from the income-tax department, asking it to pay Rs 1,823 crore.

Congress general secretary KC Venugopal has instructed all state units to stage demonstrations at PCC and district Congress Committee headquarters tomorrow.

“Eight years of Income Tax returns of the INC have been reopened on baseless, manufactured grounds to levy patently illegal Income Tax demand orders totalling thousands of crores of rupees. This is nothing but a blatant and naked attack on the very principals of democracy,” Mr Venugopal said in a letter addressed to party workers on Friday.

“Now in a patently illegal and undemocratic action, the Income Tax Department – has launched its next premeditated, diabolical campaign against the INC. Eight years of Income Tax returns of the INC have been reopened on baseless, manufactured grounds to levy patently illegal Income Tax Demand orders totalling thousands of crores of rupees. This is nothing but a blatant and naked attack on the very principals of democracy,” he stated in a letter.

“In light of this egregious attack on democracy and the imposition of tax terrorism on our party amidst the crucial Lok Sabha elections, All Pradesh Congress Committees (PCCs) are requested to hold massive public demonstrations at the State and District headquarters in their respective states tomorrow and the following day, involving senior leaders and party functionaries. Massive protest demonstrations shall be held in all constituencies, led by our party candidates. Protest demonstrations, including Mashal Juloos, shall be conducted in all districts by the District Congress Committees,” he added.

Earlier, accusing the Income Tax Department of double-standards, Congress alleged that while it has been penalised for “a violation of Rs 14 lakh,” the income tax authorities were completely silent on “Rs 42 crore violation” by the BJP and that the violations by the ruling party at the Centre entailed a penalty of Rs 4,600 crore.

Addressing a press conference, Congress leaders Jairam Ramesh and Ajay Maken said there was an attempt to stifle the party financially during the Lok Sabha polls.

Mr Maken said the Election Commission should ensure a level-playing field.

“We have received notices from the time of Sitaram Kesari, from 1993-94… We have been demanded to pay Rs 53 crores from the time of Sitaram Kesari. A total of Rs 1823 crores has been made by the IT department from Congress,” he said.

“We have analysed all violations of the BJP using the same parameters they used to analyse our violations… BJP has a penalty of Rs 4600 crore. The income Tax department should raise a demand from the BJP for the payment of this amount,” he added.

Mr Maken said that efforts are being made to weaken the Congress financially, by freezing the party’s bank account before the Lok Sabha elections.

Recently, the Delhi High Court upheld the Income Tax Appellate Tribunal (ITAT) order refusing to stay on the Income Tax notice for recovery of more than Rs 105 crore as outstanding tax against the Congress. The Court, while upholding the ITAT order, granted liberty to the petitioner’s Congress party to move the appellate tribunal afresh with the grievance.

The Congress has recently approached the Income Tax Appellate Tribunal (ITAT) against the recovery and has filed a complaint and sought a stay against Income Tax Department proceedings of recovery and “freezing” of their bank accounts.