The Centre informed the Supreme Court on Monday that the Income Tax department will refrain from any recovery actions against the Congress party until the culmination of the Lok Sabha elections.
The Centre’s statement came during a hearing of a petition filed by the Congress challenging the proceedings initiated by the IT department. Solicitor General Tushar Mehta conveyed the government’s stance, highlighting the political nature of the Congress party during ongoing elections, emphasizing that no coercive measures would be taken against them.
Senior Advocate Abhishek Singhvi, representing the Congress, welcomed the gesture, describing it as “gracious” and appreciating the Centre’s decision not to pursue recovery until after the polls.
The Congress had recently received a demand notice of Rs 1,823 crore from the IT department, with additional notices totaling approximately Rs 3,500 crore for various assessment years.
Reacting to the notices, Congress leader Rahul Gandhi criticized the BJP-led government, accusing it of “tax terrorism” and promising consequences once the government changes hands.
The Congress alleged that the central government aimed to freeze its bank accounts, a claim reiterated by Congress leader Jairam Ramesh, who disclosed that two more income tax notices were received by the party.
The cumulative demand from the Income Tax department now stands at Rs 3,567 crore, according to Congress sources. The party reportedly lost its income tax exemption for the year 2018-19 due to extensive cash usage in the electoral process.
Previously, the Delhi High Court had dismissed Congress’ petitions challenging the initiation of income tax reassessment proceedings for multiple assessment years, including 2014-15, 2015-16, and 2016-17.