Congress Receives Temporary Relief as Income Tax Department Holds Off Coercive Measures Until July 24

New Delhi: The Congress party recently received temporary relief as the Income Tax department assured the Supreme Court on Monday that it would refrain from taking any coercive measures against the party until July 24 regarding outstanding tax claims.

The Congress had voiced concerns, alleging that the Central government aimed to undermine the party’s operations through the Income Tax department, especially in light of the impending Lok Sabha elections.

Solicitor General Tushar Mehta informed the Supreme Court that considering the ongoing electoral process, the department is committed to avoiding any disruptions for political entities.

This assurance came during a hearing on an application filed by the Congress challenging a 2016 Delhi High Court ruling, which served as the basis for the Income Tax department’s tax assessments against the party.

The Supreme Court has scheduled the next hearing on July 24.

Recently, the Congress received fresh notices amounting to over ₹1745 crore in tax demands, shortly after being asked to settle ₹1823 crore in taxes by the department. This brings the total tax demand against the party to ₹3,567 crore.

According to PTI, the latest income tax notices pertain to the fiscal years 2014-15 (₹663 crore), 2015-16 (approximately ₹664 crore), and 2016-17 (around ₹417 crore). The Income Tax department has also withdrawn ₹135 crore from the Congress party’s accounts.

Congress treasurer Ajay Maken raised allegations against the BJP, claiming significant tax infractions and suggesting that the BJP should be liable for a tax payment of ₹4600 crore. He argued that using the same parameters applied to the Congress, the BJP’s tax liabilities would far exceed what has been demanded from the Congress.

Moreover, Maken accused the Income Tax department of selectively targeting Congress and other opposition parties, labelling it as “tax terrorism.”

Jairam Ramesh, another prominent Congress figure, reiterated the party’s determination in the face of these challenges, stating that efforts to financially cripple the Congress would not succeed.

(With inputs from agencies)

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