IT Department tells ITAT no freeze on Congress party's bank accounts, only lien

The Income Tax Department (IT Department)on Friday told the Income Tax Appellate Tribunal (ITAT) that it has not issued any direction to freeze the bank accounts of Congress party. .The Department of Revenue of Ministry of Finance told the ITAT that it had not issued any order or direction to the banks for freezing the transactions relate to accounts of Congress “but only for a lien on the amount lying in the bank account(s) upto the outstanding tax demand".The submission was made in response to a stay application moved by the Congress party alleging that its bank accounts have been frozen by the IT Department.The ITAT bench of Vice President GS Pannu and Judicial Member Abhinav Sharma recorded the Department's submission and adjourned the matter to be heard on February 21. Congress treasurer Ajay Maken had in a press conference held on Friday morning announced that its bank accounts were frozen by the IT Department as cheques being issued by it were not being honoured. According to Congress, the bank accounts of party including the Youth Congress were frozen by the Department in connection with recovery of ₹210 crore. The money did not belong to any corporate interests but was received through donations from party workers, Maken said.Just around the time the Congress held the press conference, its case challenging the alleged action also came up for hearing before the ITAT in Delhi.Senior Advocate Vivek Tankha, who appeared through virtual mode for Congress, submitted that he needs an opportunity to appear physically for an extensive hearing.In the meantime, citing repercussions on the alleged freezing of accounts, the senior counsel sought a stay on the order of alleged attachment..However, the Department of Revenue of Ministry of Finance told the ITAT that it has not issued any order to freeze the accounts.The IT Department also sought time to file a status report.The Court recorded the IT Department's submission and adjourned the matter. "In the light of the aforesaid, adjourned at the request of the learned Representative for the applicant to 21st February, 2024 for arguments on the Stay Petition. Registry is directed to notify the matter for hearing accordingly," the ITAT said in the order.Soon after the press conference, the Congress Member of Parliament (MP) Tankha - who appeared for the party before ITAT, posted a video on X (formerly Twitter) informing that ITAT had allowed the political party to operate its bank accounts subject to a lien of the IT Department..Senior Advocate Vivek Krishna Tankha and Advocate Monika Aggarwal represented the Congress.Standing Counsel Vipul Agarwal with Assessing Officer Rajat Sen appeared for the IT Department.Note: Our earlier story on the issue was based on a tweet by Congress lawyer which said that ITAT had passed a direction allowing Congress to operate its bank accounts. However, as per the order copy available on ITAT website, the IT Department itself conceded that there is no freeze on accounts. The correct version is reflected in this story. .[Read Order]