Summarize

Simplifying... Inshort

The Indian government has assured the opposition Congress party that it will not pursue tax dues during the upcoming elections, following allegations of "tax terrorism" by the party.
The Congress, which has had ₹135 crore collected by the Centre through property attachments, argues that it's not a profit-making entity but a political party.
The party has also accused the ruling BJP of tax law violations, warning of repercussions for those undermining democracy.

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The Centre told the SC that it will not act against the party to recover tax dues

'Won't recover dues during polls': Centre's breather for Congress

By Tanya Shrivastava

Apr 01, 2024

11:56 am

What's the story

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.

Context

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.

In court

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.

Congress's argument

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.

Rahul Gandhi's statement

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.