Ahead of the Lok Sabha elections, the Centre assured the Supreme Court that it will not take any steps to recover alleged income tax dues of about Rs 3,500 crores from the Indian National Congress (INC) party until the upcoming elections are over.
A bench of Justice BV Nagarathna and Justice Augustine George recorded the assurance in the interim order passed today. Solicitor General of India (SG) Tushar Mehta made the undertaking before the aforesaid bench.
The order remarked that the issues which arise in these appeals are yet to be adjudicated upon but having regard to the situation now, the Income Tax department does not wish to precipitate the matter and says that no coercive steps will be taken with regard to the tax demand of Rs 3,500 crores. The bench listed the matter in the second week of July.
The Supreme Court was hearing a plea by the Congress party against the said income tax demands, which SG Tushar Mehta informed was rooted in a 2016 judgment. Tushar Mehta further added that while the Congress party has paid about Rs 134 crores in income tax dues, an additional demand for Rs 1,700 crores has now been raised based on earlier laid down criteria.
The Centre’s counsel stated that since election is going on and therefore till the matter is heard after elections the government will not take any action for recovery of the amount till then. Appearing for the Centre, SG Tushar Mehta urged the top court to list the matter in the second week of June.
Subsequently, Justice BV Nagarathna observed that Congress should not perceive negatively about someone all the time. Senior Abhishek Manu Singhvi, representing Congress said that he is rendered speechless.
SG Tushar Mehta further submitted that the Income Tax authorities will not take coercive steps till the elections are over. He added that there is a demand of Rs 3,500 crores but they still have to file a reply to this. He mentioned that these are demands arising from March 14, 28,29,30.
The apex court proceeded to record this submission and adjourned the case till July. The court said that the submission of learned Solicitor General is recorded. It added that the matter will now be heard on merits. It further underlined that Rs 3,500 crores demand is not strictly relatable to the controversy in these appeals and they may touch upon the latest demands made.