In a big relief for Congress, the central government told the Supreme Court on Monday that it would refrain from taking any coercive measures against the Indian National Congress (INC) regarding an income tax demand of approximately Rs 3500 crore until the conclusion of the upcoming Lok Sabha elections.
Solicitor General of India (SG) Tushar Mehta provided this assurance before a bench led by Justice BV Nagarathna, which duly noted and incorporated it into the interim order issued on Monday. The case is scheduled for further hearing on July 24, 2024.
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“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 crore approximately. List the matter on the second week of July,” the order stated, as reported by Bar and Bench.
The Court was addressing a plea filed by the Congress party challenging the aforementioned income tax demands, which SG Tushar Mehta indicated stemmed from a 2016 judgment.
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Furthermore, SG Mehta disclosed that while the Congress party had already settled around Rs 134 crore in income tax liabilities, an additional demand of Rs 1,700 crore had been raised based on previously established criteria.
“Since the election is going on and therefore till the matter is heard after the elections we will not take any action for recovery of amount till then. Please have this in the second week of June,” Mehta told the Court.
Expressing surprise at the government’s concession, the Congress’s counsel received Justice Nagarathna’s reassurance that negative perceptions should not always be attributed. “You (Congress) shouldn’t perceive negatively about someone all the time!” Justice Nagarathna orally observed.
SG Tushar Mehta outlined that the demand of Rs 3,500 crore, though substantial, was not directly linked to the core controversy in the appeals.
In response, the Court recorded the government’s submission and adjourned the case till July, stressing that the matter would be heard on its merits. The Court also acknowledged that the Rs 3,500 crore demand may touch upon the latest demands made.