In a significant development preceding the Lok Sabha elections, the Income Tax Department has issued a demand notice of Rs 1,700 crore to the Congress party. The notice, encompassing assessment years 2017-18 to 2020-21, includes penalties and interest, according to official sources.

This move by the Income Tax Department comes just a day after the Delhi High Court dismissed the Congress party’s petition challenging the tax notices, citing sources familiar with the matter.

Allegations from the Grand Old Party suggest that the Centre aims to freeze their bank accounts, adding a layer of contention to the ongoing dispute.

Addressing the press conference regarding the notice issued by the IT Department, Congress leader Ajay Maken accused the BJP of serious violations of tax laws. Maken asserted that the IT Department should also pursue a demand of over Rs 4,600 crore from the BJP. He further announced the party’s intention to approach the Supreme Court on April 1 to address this issue.

The Delhi High Court’s rejection of the Congress party’s petitions challenging the initiation of tax reassessment proceedings for the years 2014-15 to 2016-17 further complicates the situation. The court upheld its earlier decision not to interfere with the reassessment process, citing substantial evidence presented by the Income Tax Department regarding unaccounted transactions amounting to Rs 520 crore during the 2019 Lok Sabha Elections and the 2018 and 2013 Madhya Pradesh Assembly elections.

Additionally, the High Court dismissed the Congress party’s plea to prevent the re-opening of assessments for the years 2014-15 to 2016-17, criticizing the party’s timing of approaching the court shortly before the expiration of the assessment completion deadline.

The Income Tax Department’s decision to reopen assessments from 2014 to 2021 follows the discovery of what they term as “incriminating evidence” during searches, revealing unaccounted transactions associated with the Congress party.