No Coercive Action Against Congress Over Tax Demand Of Rs 3500 Crores During Lok Sabha Elections : Income Tax Dept Tells Supreme Court

The Income Tax Department on Monday undertook before the Supreme Court that no coercive action will be taken against the Indian National Congress (INC) in respect of the income tax demand of approximately Rs 3500 crores till July 2024 because of the impending Lok Sabha elections.

Solicitor General of India Tushar Mehta made this undertaking on behalf of the Department before a bench comprising Justices BV Nagarathna and Augustine George Masih.

The bench was hearing a civil appeal filed by the Congress party in 2018 against a 2016 judgment of the Delhi High Court. In the appeal, the party had moved an interim application seeking stay of the recent demand notices issued by the Income Tax Department in March as well as findings of the High Court.

The SG submitted that the issue in the present appeal was not related to the recent tax notices issued to the Congress party; yet, considering the impending elections, the Department will defer the coercive steps.

"Impugned judgment is of 2016. Till the matter is heard, we will not take recovery/coercive steps as elections are going on. Please have the matter in second week of July," SG said.

Passing its order, the bench recorded the SG's statement thus:

"Issues which arise in these appeals are yet to be adjudicated upon. But having regard to the prevailing situation, the department does not wish to precipitate matter inasmuch as no coercive steps shall be taken by the department over the demand of 3500 crores approximately till the next date of hearing".

The bench also recorded that the demand of approx. 3500 crores is not strictly relatable to the controversy in these appeals.

The matter is next listed for hearing on 24 July, 2024.

Counsels for appellant-INC: Senior Advocates Dr Abhishek Manu Singhvi, Vivek Tankha and Devadatt Kamat; Advocate Rohit Sharma

Case Title : Indian National Congress v. Commissioner of Income Tax Delhi | C.A. No. 64-65/2018

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