The Congress has accused the BJP of attempting to "cripple" its primary opposition before the elections.
In a big setback for the Congress just weeks ahead of the Lok Sabha elections, the Income Tax Appellate Tribunal has refused to accept the party's petition to stop the department's action against its bank accounts.
After the petition against the IT action was turned down on Friday, the Congress' counsel, Vivek Tankha, appealed that the order be kept in abeyance for ten days.
Mr Tankha, who is also the head of the Congress' legal cell, said that the tribunal had not followed its own precedents and that the party would be approaching the Delhi High Court soon.
"We are disappointed with the Income Tax Appellate Tribunal order. We will be moving the High Court very soon. They have not followed their own past precedents in granting relief on payment of 20 per cent penalty and that too to a national party which is now on the verge of contesting national elections, which are going to be notified soon," he told news agency PTI.
On February 16, the Congress had said the Income Tax Department had frozen Rs 115 crore in its bank accounts following a tax demand of Rs 210 crore as dues and penalty for the financial year, 2018-19, which was also an election year.
Days later, Congress leader Ajay Maken had claimed that Rs 65 crore had been withdrawn by the department from three of the party's accounts even though a petition against the claim was being heard by the Income Tax Appellate Tribunal.
Repeating its charge that central agencies were being misused by the BJP, the Congress had called the tax demand "politically motivated" and said that it was timed to disrupt the party's election preparations. The Congress had also accused the BJP government of "financial terrorism" and attempting to "cripple" its primary opposition before the elections.
Congress President Mallikarjun Kharge had also expressed concern over the Income Tax department's actions and called it a "deep blow to democracy".
"The unconstitutional money that BJP has collected will be used in the elections, but the money we have collected through crowdfunding will be sealed. That is why we have said that there will be no elections in the future! We appeal to the judiciary to save the multi-party system in this country and secure India's democracy. We will take to the streets and fight strongly against this injustice and dictatorship," he had said.