According to insiders, this development stems from Income Tax raids conducted in April 2019, revealing cash transactions between the Congress party and Megha Engineering, as well as a company allegedly linked to associates of Kamal Nath.
The Congress party has failed to secure any form of legal intervention
from various judicial bodies regarding the Income Tax issue due to the
comprehensive and substantiated evidence presented by the Income Tax Department
in courts. According to sources speaking to News18, this evidence, recorded on
record, indicates that the party received cash amounting to Rs 626 crore
between 2013 and 2019.
On Friday, the Congress disclosed that it has received demand notices
totaling Rs 1,823 crore, with three additional notices anticipated. However,
sources suggest that the total demand from the Income Tax Department on the
Congress could surpass Rs 2,500 crore. These developments stem from Income Tax
searches conducted in April 2019, revealing cash transactions between the
Congress and Megha Engineering, as well as a company allegedly associated with
Kamal Nath's aides. The cash receipts, amounting to Rs 626 crore over several
years, were reportedly for contracts awarded and allegedly from a significant
corruption scandal in Madhya Pradesh.
The evidence reportedly includes specific details such as a payment of
Rs 20 crore from Kamal Nath's official residence to the AICC office. Under
Section 13A of the Income Tax Act, political parties are exempt from income tax
under certain conditions, including not accepting cash amounts exceeding Rs
2,000. Sources claim that the Congress party did not meet these conditions,
leading to the loss of tax exemption and liability to pay tax on its entire
income, including from undisclosed sources.
The timing of the order is crucial as the assessment was nearing the
time limit on March 31, 2024, and had to be completed by that date, according
to sources. Additionally, sources challenge the Congress party to release the
entire assessment order to the public, suggesting that its contents would be
highly incriminating.