In the midst of active election activities, the Income Tax department’s decision to hold off on pursuing coercive measures against the Congress party till July 24 has temporarily eased the political environment. The events transpired during a Supreme Court hearing in which the Congress opposed tax demands on the basis of a Delhi High Court ruling from 2016.
Background: Income Tax Agency’s Previous Demand
The Income Tax agency had previously demanded ₹1823 crore from the Congress party, and now they were facing additional tax notices totaling over ₹1745 crore. Days had passed since the first tax demand was sent out when these reminders arrived. Senior Advocate Abhishek Singhvi emphasized the party’s position, stressing that the Congress is a political body rather than a business.
Court proceedings
Solicitor General Tushar Mehta announced the department’s intention to postpone using force against the Congress until July 24 during the Supreme Court hearing. He justified not wanting to disturb any political party by pointing to the ongoing election process. While observing that the substantive problems raised in the appeals have not yet been thoroughly investigated, the court noted this statement.
The Congress party previously charged the ruling BJP of undermining its operations by taking advantage of tax regulations. Party leader Rahul Gandhi promised to take decisive action to stop such incidents in the future, but he also warned of repercussions whenever the government changes.
In summary, the Income Tax department’s interim reprieve provides the Congress party with some much-needed relief during its ongoing court battle over tax demands. While the Supreme Court continues to deliberate on the case, accusations and denials about the use of government agencies for political gain continue to bombard the political landscape.
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