GG News Bureau
New Delhi, 1st April. The Centre assured the Supreme Court today that it will not take any coercive steps against the Congress party to recover tax dues exceeding ₹3,500 crore, providing a significant relief to the Opposition party just before the Lok Sabha elections. The court scheduled the next hearing for July 24.0
The Congress had approached the Supreme Court after receiving notices from the Income Tax department demanding payment of tax dues totaling ₹3,567 crore. The party accused the ruling BJP of engaging in “tax terrorism” and viewed the tax department’s actions as an attempt to financially suffocate them in the lead-up to the elections. The Congress argued that this was disrupting a fair playing field for the elections and called on the Election Commission to intervene.
Previously, tax authorities had withdrawn ₹135 crore from the party’s accounts for past dues. Solicitor General Tushar Mehta informed the court that no coercive action would be taken against the Congress during the elections. He mentioned that the party had the option to pay 20% of the dues in 2024, with ₹135 crore already recovered and an additional demand of ₹1,700 crore raised later.
When asked if the Centre was suspending the tax demand, Mehta clarified that they were only refraining from taking any action until after the elections. Senior Advocate Abhishek Singhvi, representing the Congress, highlighted that the party is not a profit-making organization but a political entity.
The court acknowledged that the appeals raised by the Congress are yet to be fully adjudicated and stated that the matter will be further examined on its merits. For now, the Congress can breathe a sigh of relief.
Previously, Congress leader Rahul Gandhi had warned of taking strict action against such steps once the government changes. Other party members also criticized the alleged attempts to financially weaken the Congress, emphasizing the need for a fair electoral environment.
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