On Monday, the income tax department assured the Supreme Court that it would abstain from taking any coercive actions against the Indian National Congress (INC) regarding the income tax demands amounting to approximately ₹3,500 crore until July, considering the upcoming Lok Sabha polls.
Solicitor General of India Tushar Mehta, representing the Union government and the IT department, made this commitment before a bench comprising Justice B.V. Nagarathna and Justice Augustine George Masih. The Congress party, in the case, filed an interim application against the recent demand notices issued by the IT department.
Mehta clarified that the current appeals do not directly pertain to the recent tax notices sent to the Congress party. Nevertheless, in light of the impending elections, the department would postpone any coercive measures, he assured the court.
The bench also noted that the demand for around ₹3,500 crore is not directly relevant to the matters discussed in the current appeals, observing that these demands touched upon other issues related to the appellant.
Last Saturday, the income tax department issued notices to the Congress party for the assessment years 2014-15 to 2016-17, with demands totaling ₹1,745 crore. Additionally, notices were sent for assessment years 1994-95 and 2017-18 to 2020-21, with the total demand amounting to ₹3,567 crore.
The Congress has faced various tax notices from the IT department ahead of the Lok Sabha elections and encountered setbacks from appellate tribunals and Delhi courts on these tax matters. Alleging “tax terrorism” by the ruling BJP, the Congress accused the prime minister of orchestrating a systematic effort to weaken the party financially.
Previously, the Delhi High Court dismissed several pleas by the Congress, including four similar pleas regarding reassessment proceedings for three years (2014-15, 2015-16, and 2016-17). On 25 March, the court rejected three petitions filed by the Congress, noting that they were filed shortly before the completion of assessment proceedings.
Earlier, the court upheld the Income Tax Appellate Tribunal (ITAT)’s order on 8 March, denying a stay on a demand notice for recovering over ₹100 crore in outstanding taxes for the assessment year 2018-19. However, it allowed the Congress to file a fresh application for stay before the ITAT, considering recent developments, including the recovery of ₹65.94 crore by tax authorities. The bench stressed that if the Congress party filed such an application, the ITAT should promptly consider it.
