Central Government Halts Tax Recovery from Congress Until Elections

In a significant development, the Central government has pledged to refrain from pursuing alleged income tax dues of approximately ₹3,500 crores from the Indian National Congress (INC) party until after the upcoming general elections.

Solicitor General of India (SG) Tushar Mehta assured the Supreme Court of this commitment during today's proceedings, which were presided over by a bench led by Justice BV Nagarathna.

"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) ₹3,500 crores approximately. List the matter on the second week of July," the order stated.

The Congress party had filed a plea challenging the income tax demands, rooted in a 2016 judgment, which SG Tushar Mehta elaborated on during the hearing. He disclosed that while Congress had already settled about ₹134 crores in income tax dues this year, an additional demand of ₹1,700 crores had been levied based on previously established criteria.

Mehta further assured the Court that no action to recover the outstanding dues would be pursued until after the conclusion of the Lok Sabha elections. Notably, the Central government's leniency was met with surprise by the Congress' counsel, Senior Advocate AM Singhvi.

"On March 27, 28, and 29,  there was a block assessment, he (income tax authority) has collected ₹ 135 crores by attachment of propertie. We (Congress) are not a profit-making organization and only a political party," Singhvi remarked. The Court recorded these submissions and adjourned the case until July, emphasizing that the matter would be revisited on its merits.

In a related development, the Delhi High Court recently dismissed petitions by the Congress party challenging Income Tax department proceedings to re-open assessment for multiple fiscal years, highlighting the ongoing legal challenges faced by the political entity.

Author: Anushka Taraniya

News Writer, MIT ADT University