Kochi: As the Congress leadership asserts that the party's bank accounts have been frozen, Kerala Pradesh Congress Committee (KPCC) acting President MM Hassan spearheaded a crowdfunding initiative on Saturday to gather funds for their election campaign.
In a video, Hassan was seen visiting shops in Thiruvananthapuram with a collection bucket, soliciting funds for managing the upcoming poll campaign in the state ahead of the Lok Sabha elections. Hassan claimed that the funds would be utilized for election-related expenses, stating, "KPCC and All India Congress Committee (AICC) have decided to reach out to the common people and seek their support for election-related activities."
"Today, our party workers and I are conducting a street collection drive to cover the expenses of the election work carried out by our local workers," he elaborated as reported by the media.
The Congress party revealed on Friday that its bank accounts had been frozen owing to a Rs 210 crore income tax demand related to a dispute, just months before the national elections.
The party condemned the action as "a grave attack on India's democracy," mentioning that an income tax tribunal had granted partial access to its accounts until February 21. Meanwhile, former Congress President Sonia Gandhi criticized PM Modi, alleging that this move was part of "a systematic effort by the PM to debilitate Congress."
Congress treasurer Ajay Maken informed reporters that the party had lodged a complaint against the tax department after banks were instructed to freeze funds in its accounts.
Shortly after Congress Treasurer Ajay Maken's statement regarding the freeze of the party's bank accounts, the tax tribunal clarified that there were no restrictions on the party accessing its bank accounts. Rajya Sabha MP and lawyer Vivek Tankha confirmed the development, stating that he represented the Congress party before the Income Tax Appellate Tribunal bench in Delhi.
REASON BEHIND THE FREEZE OF CONGRESS'S BANK ACCOUNTS
The Congress party is entangled in a contentious income tax case with the I-T Department concerning tax claims for the assessment year (AY) 2018-19. Initially, a claim of Rs 103 crore was filed, later revised to Rs 105 crore. Subsequently, with the inclusion of Rs 30 crore as interest, the claim escalated to Rs 135 crore.
The IT Department issued its first notice to the Congress party on July 6, 2021, allowing them 30 days to clear their dues. However, receiving no response, a follow-up notice was issued on October 28, 2021, offering the party the option to settle 20 per cent of the outstanding amount.
Despite the legal obligation, the Congress party failed to pay a fifth of the pending amount while their appeal remained under scrutiny by the IT Commissioner. Consequently, after the party's failure to comply, the IT Department pressed for the full sum.
In the fiscal year 2021-22, the IT Commissioner dismissed Congress's appeal against the IT Department's notice. Subsequent notices in 2023 were similarly disregarded. Eventually, in May 2023, the party appealed against the IT Commissioner's decision in the Income Tax Appellate Tribunal (ITAT).
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