New Delhi: In a big relief to the Congress ahead of Lok Sabha polls, the Centre told the Supreme Court today that it will not act against the Opposition party to recover tax dues amounting to over ₹ 3,500 crore.
The matter, the court said, will be heard next on July 24.
The Congress had approached the Supreme Court after it received notices from Income Tax department, seeking payment of tax dues amounting to a whopping ₹ 3,567 crore. The Opposition party has accused the ruling BJP of “tax terrorism” and alleged the Income Tax department’s move as an attempt to choke it financially in the run-up to polls. The party has said this was disrupting the level-playing field for the polls and also urged the Election Commission to intervene.
Earlier, tax authorities withdrew a sum of ₹ 135 crore from a party’s accounts for dues from previous years.
When the case came up before a bench led by Justice BV Nagarathna today, Solicitor General Tushar Mehta said the central agency will take no coercive action against the Opposition party’s during polls.
“They were given an option to pay 20 per cent in 2024, ₹ 135 crore (was) recovered. ₹ 1,700 crore demand has been raised later. Therefore, the matter pertains to ₹ 1,700 subsequently raised. This whole matter can be fixed for post elections. We will not take any action till then,” he said.
When the court asked if the Centre is pausing the tax demand, Mehta replied, “No, we are just saying that we will not take any action till the election.”
Appearing for the Congress, Senior Advocate Abhishek Singhvi said the Centre has collected ₹ 135 crore by attaching properties. “We are not a profit-making organisation, only a political party.”
The Solicitor General said he has much to say on the merits.
The court noted that the issues arising in the appeals are yet to be adjudicated upon and that the matter will be heard on merits going forward.