I-T dept took Rs 135 crore from our funds, says Congress chief Kharge

Congress Chief, Mallikarjun Kharge, has raised serious allegations against the Income Tax (I-T) Department, claiming that a staggering sum of Rs 135 crore has been extracted from the party's funds. Kharge  criticized the move, asserting that such actions are aimed at intimidating the opposition and undermining the democratic process.

"This government wants to scare us. Can an election be held in a democracy in such a way?" Kharge questioned, highlighting concerns over the fairness and transparency of electoral practices under the current administration.

Kharge emphasized the importance of upholding democratic principles, stating, "People want democracy, they want to protect the country's Constitution." His remarks underscore the significance of preserving democratic norms and ensuring the integrity of electoral processes.

The controversy surrounding the Congress party's finances escalated following revelations that the party lost income tax exemption for the fiscal year 2018-19 due to extensive cash usage in the electoral process. Citing sources, it was disclosed that the ₹135 crore tax recovery was deemed consistent with the provisions of the Income Tax Act.

The I-T Department's decision to initiate recovery proceedings was reportedly based on incriminating evidence uncovered during search operations conducted in April 2019. Assessments of the party spanning seven years (AY 2014-15 to AY 2020-21) were reopened in light of these findings.

Despite repeated communications and rejected stay applications, the Congress party allegedly failed to comply with the demand raised by the authorities. Consequently, recovery proceedings were initiated under Section 226(3) of the Income Tax Act, leading to the extraction of Rs 135 crore from the party's coffers.

While the I-T Department maintains that the recovery was made in accordance with established legal provisions, the Congress party has vehemently denounced the action, labeling it as "tax terrorism."