'Won't recover dues during polls': Centre's breather for Congress
In a relief to the Congress ahead of the 2024 elections, the Centre told the Supreme Court on Monday that it will not act against the party to recover tax dues amounting to ₹3,500 crore. The matter will now be heard on July 24. The Congress had approached the court after it received notices from the Income Tax Department over non-payment of tax dues.
Why does this story matter?
The opposition party has leveled allegations of "tax terrorism" against the ruling BJP, asserting that the recent actions by the I-T department are aimed at financially stifling them ahead of the Lok Sabha elections. They argue that this move disrupts the level playing field for the upcoming polls and have called upon the Election Commission of India to intervene.
Whole matter can be fixed for post elections: Tushar Mehta
In court on Monday, Solicitor General Tushar Mehta told a bench led by Justice BV Nagarathna that the department will not take any coercive action against the Congress during the polls. "They were given an option to pay 20% in 2024, ₹135 crore (was) recovered...The matter pertains to ₹1,700 subsequently raised. This whole matter can be fixed for post elections," he said.
Not a profit-making organization: Congress
Senior Advocate Abhishek Manu Singhvi, representing the Congress, mentioned that the Centre has already collected ₹ 135 crore by attaching properties. He added that they are "not a profit-making organization, only a political party." The court noted that the issues arising in the appeals are yet to be adjudicated upon and that the matter will be heard on merits going forward.
Congress accuses BJP of tax law violations
The Congress previously accused the ruling Bharatiya Janata Party of serious tax law violations, criticizing the I-Tax department's inaction toward the same. Congress leader Rahul Gandhi cautioned that upon a change in government, "exemplary measures" would be implemented so that no one "dares" take such steps again. "There will be repercussions for those undermining democracy," he added.