No coercive action against Congress over tax demand notices in view of Lok Sabha polls: I-T Dept to Supreme Court

Income Tax Department will not take coercive action against Congress for ₹3,500 crore tax demand during Lok Sabha elections.

The Income Tax department has informed the Supreme Cout that no coercive steps would be taken against the Indian National Congress on tax demands to the tune of approximately ₹3,500 crore raised in March in view of the general elections.

A Bench headed by Justice B.V. Nagarathna recorded the “concession” made by Solicitor General Tushar Mehta, appearing for the department, and posts the main case for hearing on merits on July 24, 2024. Mr. Mehta made a point to say that the statement has been made even though the demands raised in March for a total ₹3,500 crore approximately are not strictly relatable to the appeals pending in the Supreme Court.

“Till the matter is heard in July 2024 by the Supreme Court, we will not take any coercive steps. Since the election is going on, we do not want to cause any problems for any political party,” Mr. Mehta submitted in the Supreme Court

Senior advocate Abhishek Singhvi, appearing for the Congress appreciated the gesture, terming it “gracious”, and said all demand notices were issued in March and before for different years totalling approximately ₹3,500 crore.

The Congress on March 31 said it has received fresh notices from the Income Tax Department, raising a tax demand of ₹1,745 crore for the assessment years 2014-15 to 2016-17. With this latest notice, the Income Tax Department has raised a total demand of ₹3,567 crore from the party, it had said.

On March 29 the party said it received notices from the I-T Department, asking it to pay around ₹1,823 crore. The tax authorities have already withdrawn ₹135 crore from the party’s accounts for a tax demand relating to previous years.

(With inputs from PTI)