Supreme Court Gives Congress Break from Tax Collections

Amidst the ongoing Lok Sabha elections, the Indian Income Tax Department has agreed to defer the recovery of Rs. 1,700 crore from the Congress party until after the polls, as per an assurance given to the Supreme Court. The move comes in response to the party's challenge against the tax demand, which the Congress has criticized as politically motivated.

Supreme Court Grants Congress Respite from Tax Recovery

New Delhi, April 1 (MENAFN): In a significant development, the Income Tax Department has assured the Supreme Court that it will defer any actions to recover approximately Rs 1,700 crore from the Indian National Congress (INC) until after the conclusion of the Lok Sabha elections.

Solicitor General Tushar Mehta, representing the tax department, conveyed to the apex court that no coercive measures would be initiated against any political party during this period. This assurance was recorded by the bench, acknowledging the department's commitment.

The directive came in response to a petition filed by the INC challenging the tax department's demand for Rs 1,700 crore. The department's demand includes penalties and interest for assessment years spanning from 2017-18 to 2020-21.

The INC has come under fire for its alleged failure to meet specified conditions for tax exemption, resulting in the withdrawal of funds from its bank accounts in Delhi. The tax department has justified this action, citing the party's failure to meet its dues.

In a joint press conference held at the AICC headquarters, INC Parliamentary Party Chairperson Sonia Gandhi expressed concern over the government's actions, alleging that the freezing of accounts has not only impacted the party but also undermined democratic principles. She further accused Prime Minister Narendra Modi of financially debilitating the INC ahead of the general elections.

Amidst the ongoing election season, the tax department's actions have raised questions about the potential for political interference in tax matters. The deferral of recovery actions granted by the Supreme Court provides temporary respite for the INC, but the issue is likely to remain under scrutiny.

The cumulative tax demand faced by the INC currently exceeds Rs 3,500 crore, posing a significant financial challenge for the party. It remains to be seen how this matter will unfold in the coming weeks and months, especially in the context of the upcoming elections.

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