Today (1st April), the Income Tax Department informed the Supreme Court that no coercive action will be taken against the Congress party until July 2024, in consideration of the Lok Sabha polls.
NEW DELHI: Today (1st March): The Income Tax (I-T) Department informed the Supreme Court that it does not intend to recover Rs 1700 crore from the Congress Party ahead of the Lok Sobha Polls. The Congress Party has claimed that the total demand raised by the Income Tax Department is approximately Rs 3500 crore.
The bench, comprising Justice BV Nagarathna and Justice Augustine George Masih, heard the matter. Solicitor General Tushar Mehta, representing the Income Tax Department, informed us that no forceful measures would be taken to recover the amount from the party.
Senior Advocates Dr. Abhishek Manu Singhvi and Vivek Tankha represented the Congress party during the proceedings.
Background
The Delhi High Court’s dismissal of the Congress party’s petition against the reassessment proceedings covering four assessment years has increased financial losses for the party just before the Lok Sabha elections. The income tax department’s demand relates to the assessment years 2017-18 to 2020-21, penalties, and interest charges.
Previously, the Congress party had accused the BJP of employing “tax terrorism” as a tactic to weaken the opposition financially in the lead-up to the Lok Sabha elections.
The Solicitor General emphasized that the present appeal was not directly related to the recent tax notices issued to Congress. However, considering the upcoming elections, the Income Tax Department will postpone any coercive actions.
“The impugned judgment is from 2016. Until the matter is heard, we will not pursue recovery or coercive steps due to the ongoing elections. Please schedule the matter for the second week of July,” stated the Solicitor General.
In response, the bench recorded the Solicitor General’s statement, ensuring that no coercive measures will be taken by the Income Tax Department regarding the demand of approximately Rs 3500 crores until the next hearing.
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Furthermore, the bench clarified that the demand of around Rs 3500 crores is not directly connected to the issues raised in the ongoing appeals.
The next hearing for the case is scheduled for July 24, 2024.
