No coercive action against Congress over income tax demand of Rs. 3,500 crores till Lok Sabha elections: SC lists matter for hearing on July 24, 2024

Today, the Central Government ensured the Supreme Court (SC) that no coercive action will be taken to recover alleged income tax dues of approximately Rs. 3,500 crores from the Indian National Congress (INC) till the upcoming Lok Sabha elections (July 2024). On behalf of the Union Government, Solicitor General Tushar Mehta made the undertaking today before the SC bench comprising Justice BV Nagarathna and Justice Augustine George Masih. The SC was hearing a plea filed by the Congress party against a 2016 judgment of the Delhi High Court. The filed plea sought a stay of the recent demand notices by the Income Tax Department. During the proceedings, SG Mehta submitted “Impugned judgment is of 2016. Till the matter is heard we will not take recovery/coercive steps as elections are going on. Please have the matter in second week of July.” After hearing the arguments, the bench considered the statement of SG Mehta and pronounced the order as, “Issue which arise in these appeals are yet to be adjudicated upon. But having regard to the prevailing situation, the department does not wish to precipitate matter in as much as no coercive steps shall be taken by the department over the demand of 3500 crores approximately till the next date of hearing.” Therefore, the matter was listed for the next hearing on July 24, 2024.