In a significant development favoring the Congress party ahead of the upcoming Lok Sabha elections, the Centre has informed the Supreme Court that it will not take coercive steps to recover tax dues amounting to over ₹3,500 crore. The matter, which has been a subject of contention between the Congress and the Income Tax department, will be revisited in court on July 24.
The Congress had approached the Supreme Court after receiving notices from the Income Tax department, demanding payment of tax dues totaling ₹3,567 crore. This move was met with strong opposition from the Congress, accusing the ruling BJP of engaging in “tax terrorism” and using the Income Tax department’s actions as a tactic to financially stifle the party in the lead-up to the elections. The Congress also urged the Election Commission to intervene, citing concerns about a disrupted level playing field for the polls.
Earlier, the tax authorities had withdrawn ₹135 crore from the Congress party’s accounts for previous years’ dues. Solicitor General Tushar Mehta, representing the Centre, stated before the Supreme Court that no coercive action would be taken against the Congress during the election period. He clarified that while a demand of ₹1,700 crore was later raised, no action would be initiated until after the elections.
Senior Advocate Abhishek Singhvi, representing the Congress, emphasized the party’s non-profit nature and highlighted the ₹135 crore already recovered through property attachments. The court took note of these arguments and decided to defer further action on the matter until after the elections.
The Congress, which had accused the BJP of violating tax laws without facing consequences, expressed relief at the temporary reprieve. Party leaders, including Rahul Gandhi, Jairam Ramesh, and Ajay Maken, reiterated their stance against what they perceived as targeted actions aimed at crippling the Congress financially.
Sources By Agencies