I-T Reprieve for Congress Till Polls

New Delhi: In a major reprieve to the Congress, the income-tax department on Monday told the Supreme Court that it will not take coercive action against the party for the tax demand notices of over Rs.3,500 crore in view of the forthcoming Lok Sabha elections.

A bench of Justices B.V. Nagarathna and Augustine George Masih recorded the statement of Solicitor-General Tushar Mehta, representing the income-tax department, that no precipitative action will be taken in the prevailing circumstances till the final adjudication of the matter. The bench posted the Congress' plea against different tax demand notices for further hearing on July 24.

“At the commencement of the hearing on this application, the Solicitor-General, appearing for the respondent department, submitted that there is no dispute that on several dates in the month of March 2024, demands have been raised as against the appellant herein totalling approximately `3,500 crore,” the bench noted.

The bench said: “It is further submitted (by Mehta) that issues which arise in these appeals are yet to be adjudicated upon, but having regard to the situation now, the department does not wish to precipitate the matter as much as no coercive steps shall be taken by the respondent department with regard to the aforesaid demand of Rs.3,500 crore approximately.”

Senior advocate Abhishek Singhvi, representing the Congress, appreciated the S-G’s gesture, dubbed it as gracious and said that this was one of the occasions he was rendered speechless. Kindly have it in July,” he said.

As the hearing began, Mehta said: “To balance the equity. The petitioner is a political party”.

Based upon the 2016 judgment, which is under challenge, we have raised the demand of Rs.1,700 crore. Since the election is going on, we would not like any problem to arise for any party and therefore, till the matter is heard after the election, we will not take any action for recovery of Rs.1,700 crore.”

Mehta said the impugned judgment of the Delhi High Court is of March 23, 2016, and based upon the parameters set by it, a tax demand was raised against the party in 2021.