The Income Tax department informed the Supreme Court on Monday, April 1, that it has opted not to take any coercive measures against the Congress party regarding the tax demand notices amounting to ₹3,500 crore, considering the Lok Sabha elections 2024.
The I-T department requested the court to defer the matter for hearing until June, stating, “Do not want to create problems for any party during elections.”
In the Supreme Court, a bench led by Justice B V Nagarathna and Justice Augustine George Masih recorded the Solicitor General’s statement and scheduled the Congress’ plea against the tax demand notices for July.
Representing the Tax department, Solicitor General Tushar Mehta informed the court that no immediate action would be taken until the final resolution of the matter in the current circumstances.
Tushar Mehta further commented that the I-T department is refraining from expressing an opinion on the merit of the matter, emphasizing that all rights and contentions should remain open, according to a report.
Senior advocate Abhishek Singhvi, representing the Congress in court, commended the I-T department’s gesture, describing it as “gracious.”
Abhishek Singhvi highlighted that demand notices were issued in March and earlier for different years totaling approximately ₹3,500 crore.
On March 31, the last day of the financial year 2023-24, the Congress disclosed that it had received fresh notices from the Income Tax department. According to the Congress’ assertions, these notices raised a tax demand of ₹1,745 crore for the assessment years 2014-15 to 2016-17.
The Tax department has made a total demand of ₹3,567 crore from the party, with the issuance of the latest notice. Additionally, based on the party’s claims regarding notices received by the I-T department on Friday, March 29, a demand of ₹1,823 crore was raised.
In a recent development concerning tax demands from previous years, the tax authorities have already withdrawn ₹135 crore from the party’s accounts.