New Delhi: The Centre informed the Supreme Court on Monday that the Income Tax (I-T) Department would refrain from taking any action on tax notices issued to the Congress party until the conclusion of the forthcoming Lok Sabha elections.
A Bench headed by Justice B.V. Nagarathna was briefed by Solicitor General (SG) Tushar Mehta about the decision, stating that the I-T Department would suspend proceedings to recover approximately Rs 3,500 crore in tax demand from the grand old party due to the special circumstances arising from the general polls.
“Since elections are ongoing, Milords, we would not like any problem to arise for any political party,” expressed SG Mehta, representing the Centre.
Emphasizing that the I-T Department has important matters to present, he urged the apex court to schedule further hearings on the merits of the case in the second week of June, following the conclusion of the elections.
Acknowledging the assurance provided by the I-T Department that no coercive action would be taken against the Congress party during this period, the Bench, which also included Justice Augustine George Masih, directed the matter to be listed on July 24 for further proceedings.
The development comes in the wake of the Delhi High Court’s recent decision to dismiss pleas filed by the Congress challenging the initiation of income tax reassessment proceedings by tax authorities.
With this decision, the Congress party can now focus its attention on the electoral process without the looming concern of impending tax actions, providing a temporary respite amid the ongoing political activities.