Centre tells Supreme Court it will not take action against Congress over ₹3.5K crore tax demand until end of elections

The Central government today assured the Supreme Court that it will not take any steps to recover alleged income tax dues of about ₹3,500 crores from the Indian National Congress (INC) party until the upcoming general elections are over. .Solicitor General of India (SG) Tushar Mehta made the undertaking before a bench led by Justice BV Nagarathna, which proceeded to record this assurance in the interim order passed today.."The issues which arise in these appeals are yet to be adjudicated upon but having regard to the situation now, the (Income Tax) department does not wish to precipitate the matter and (says) that no coercive steps will be taken with regard to (the tax demand of) ₹3,500 crores approximately. List the matter on second week of July," the order stated. .The Court was hearing a plea by the Congress party against the said income tax demands, which SG Tushar Mehta informed was rooted in a 2016 judgment. SG Mehta added that while the Congress party has paid about ₹134 crores in income tax dues this year, an additional demand for ₹1,700 crores has now been raised based on earlier laid down criteria. The Central government's counsel went on to assure the Court that any action to recover the pending dues would be deferred till after the upcoming Lok Sabha polls. "Since election is going on and therefore till matter is heard after elections we will not take any action for recovery of amount till then. Please have this on Second week of June ... I have much to say on merits," Mehta told the Court. .The leeway given by the Central government was met with surprise by the Congress' counsel."You (Congress) shouldn't perceive negative about someone all the time!" Justice Nagarathna orally observed. "I am rendered speechless and very few times I am," replied Senior Advocate AM Singhvi, who appeared for the Congress party today. "On March 27, 28, 29... there was a block assessment ... he (income tax authority) has collected ₹ 135 crores by attachment of properties ... We (Congress) are not a profit making organisation and only a political party," Singhvi added.."We (Income Tax authorities) will not take coercive steps till the elections are over. There is a demand of ₹ 3,500 crores.. but we have to still file reply to this... These are demands arising from March 14, 28,29,30 ...," SG Mehta eventually told the Court. The Court proceeded to record this submission and adjourned the case till July. "The submission of learned Solicitor General is recorded. The matter will be heard now on merits. It is further noted that ₹3,500 crores demand is not strictly relatable to the controversy in these appeals and they may touch upon on the the latest demands made," the Court said in its order. .On a related note, the Delhi High Court recently rejected petitions filed by the Congress party against the Income Tax departments to re-open assessment proceedings against the party for the years 2014-15, 2015-16 and 2016-17, as well as for the assessment years 2017-18, 2018-19, 2019-20 and 2020-21. .IT Department has evidence on unaccounted transactions by Megha Group to Congress: Delhi High Court.Before that, the Income Tax Appellate Tribunal (ITAT) had declined to grant the Congress any relief in related matters.