The Supreme Court is set to hear the Congress Party’s petition challenging the Income Tax Department’s outstanding recovery notice. The case, which will be heard in two weeks, stems from the Delhi High Court’s decision to refuse a stay on the recovery notice demanding Rs 100 crore from the Congress.
A bench led by Justice BV Nagarathna will review the petition. During the previous hearing, the Supreme Court questioned the Delhi High Court’s decision to direct Congress to return to the tribunal after it had already appealed against the tribunal’s order. The Court expressed concerns that the High Court did not appropriately exercise its jurisdiction in the matter.
Solicitor General Tushar Mehta, representing the Income Tax Department, argued that the department had delayed taking action against Congress due to the ongoing elections. He confirmed that no immediate action would be taken against the party in light of the electoral process.
Congress Accuses Government Of ‘Tax Terrorism’
On the other hand, Congress’s legal representative, senior advocate Abhishek Manu Singhvi, accused the BJP-led central government of engaging in “tax terrorism.” Singhvi argued that the government was attempting to financially cripple the main opposition party ahead of the upcoming Lok Sabha elections.
The Income Tax Department has, so far, demanded a total of Rs 3,567 crore in taxes from the Congress Party. The tax claims are related to the financial years 2014-15, 2015-16, and 2016-17, with amounts totaling Rs 663 crore, Rs 664 crore, and Rs 417 crore, respectively. Congress has argued that the authorities revoked the tax exemption traditionally granted to political parties and imposed these hefty demands without justification.
The case is poised to attract significant attention as it unfolds, with both legal and political implications for the Congress Party.
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