On Thursday, the Delhi High Court deferred its decision on the petition submitted by the Indian National Congress (INC) challenging the Income Tax Department's move to commence tax reassessment proceedings against the political organization.

Today, three petitions from the Congress party were listed, focusing on the Income Tax Department's reassessment proceedings for the fiscal years 2014-15, 2015-16, and 2016-17.

A Division Bench comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav presided over the proceedings and indicated that the verdict would be forthcoming within a day or two. Senior Advocate Abhishek Manu Singhvi represented the Congress party and contended that the reassessment proceedings are time-barred and are being conducted in contravention of the provisions outlined in the Income Tax Act.

Advocate Zoheb Hossain represented the IT department, asserting that there has been no breach of statutory provisions. He further disclosed that, based on the recovered material, the alleged undisclosed income by the Congress amounts to over ₹520 crore. Reassessment proceedings spanning seven years have been initiated against the Congress party. Today, the Court addressed the opposition party's challenge to tax reassessment for three years. The party's plea regarding the reassessment of four additional years is scheduled for a hearing on March 21st.

Significantly, on March 13, the High Court dismissed a petition submitted by the Congress party contesting an order from the Income Tax Appellate Tribunal (ITAT), which denied their request for a stay on the demand notice issued by the Income Tax (IT) department. The demand notice sought to recover nearly ₹105 crores in outstanding taxes from the party.

A division bench comprising Justices Yashwant Varma and Purushaindra Kumar Kaurav declared that there were no grounds to intervene with the ITAT order. According to the declaration made in court, the total sum, inclusive of interest, now stands at nearly ₹135 crores.

Nevertheless, the High Court granted permission to the Congress party to file a new application for a stay before the ITAT, taking into account the developments that have transpired in the interim, including the recovery of ₹65.94 crores from the party.