The Congress party faced a freeze on all its bank accounts by the Income Tax department due to discrepancies in filing its 2018-19 tax returns, leading to a significant outcry from party members.
Partial Relief from ITAT:
The Income Tax Appellate Tribunal (ITAT) provided partial relief by allowing the Congress to operate its accounts after setting aside ₹115 crore in lien, though the frozen amount exceeded what the party had in its current accounts.
Disputed Transactions:
The freeze stemmed from an Income Tax department demand of ₹210 crore for the assessment year 2018-19, along with a dispute concerning cash donations of ₹14.4 lakh given to the party by its MLAs and MPs.
Call for Judicial Intervention:
Congress leaders criticized the freeze as an attack on democracy and appealed to the judiciary to intervene. They argued that the move severely impeded the functioning of the principal opposition party just before the general elections.
Planned Protests:
In response to the IT department’s action, Congress leaders announced plans for protests, both at the national level and across various state units, to express dissent against the perceived assault on democracy.
Multiple-Choice Questions (MCQs):
- What action did the Income Tax department take against the Congress party’s bank accounts?
- a) Freezing
- b) Seizing
- c) Attaching
- d) All of the above
- Answer: d) All of the above
- What was the reason cited by the Income Tax department for freezing the Congress party’s accounts?
- a) Discrepancies in tax returns filing
- b) Failure to pay outstanding tax demand
- c) Dispute over cash donations
- d) All of the above
- Answer: d) All of the above
- What relief did the Income Tax Appellate Tribunal (ITAT) provide to the Congress party?
- a) Full release of frozen accounts
- b) Partial relief with ₹115 crore in lien
- c) No relief
- d) Withdrawal of tax demands
- Answer: b) Partial relief with ₹115 crore in lien
- Who criticized the freeze on Congress’ accounts as an attack on democracy?
- a) Mallikarjun Kharge
- b) Ajay Maken
- c) Vivek Tankha
- d) K.C. Venugopal
- Answer: a) Mallikarjun Kharge
- What response did the Congress party plan against the IT department’s action?
- a) Legal appeal
- b) Protests
- c) Both a) and b)
- d) None of the above
- Answer: c) Both a) and b)