IT action against Congress part of routine process, say government sources: Reports
The tax department ordered the party to maintain Rs 115 crore in its bank accounts as lien, effectively freezing these funds.
The Income Tax Department’s action against the Congress’ bank accounts is part of a routine recovery process, The Times of India quoted unidentified government sources as saying.
On Friday, the Congress announced that its bank accounts had been frozen on “flimsy grounds” and that the action had hampered all the party’s political activities. Later in the day, the Income Tax Appellate Tribunal allowed the Congress to operate its bank accounts but ordered it to maintain Rs 115 crore as lien, effectively freezing these funds.
A lien is a legal claim against the assets of an individual or business accused of having failed to meet tax liabilities.
The government sources said that the Income Tax Department has not frozen any of the Congress’ bank accounts and only the amount of Rs 115 crore has been attached as part of the recovery process. The Congress’ treasurer Ajay Maken, however, said that the amount is “much more than [what] we have in our current accounts”.
The government sources, however, said that rules have been applied to the Congress as they are for all taxpayers.
“What has happened is a routine procedure, something that every tax paying citizen has to face if they default on taxes,” the sources said, according to The Hindu. “If they don’t pay up, due process will happen to the assessee.”
The accounts were frozen...
