Adversitement
Income Tax Department Relents, Suspends Coercive Action Against Congress Amidst Tax Demands
Published On : 2024-04-01T17:15:16+0530 [ IST ] |
Author : Mayur_Tembhare
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India / New Delhi :
Amidst mounting allegations of "tax terrorism," the Income Tax department, during a Supreme Court hearing on Monday, declared its decision to suspend coercive actions against the Indian National Congress in light of tax demands totaling around ₹3500 crore. This announcement comes amidst fresh notices from the Income Tax department raising significant tax demands against the Congress, threatening to escalate tensions during the ongoing General Elections.
Solicitor General Tushar Mehta, addressing the Bench headed by Justice BV Nagarathna, assured that no coercive steps would be taken against any political party until the case is heard again on July 24, 2024, mindful of the sensitivities surrounding the ongoing election process. The unexpected turn of events prompted senior advocate AM Singhvi to express his astonishment at the Solicitor General's statement.
The Congress had faced mounting trouble with the Income Tax department issuing fresh notices, demanding ₹1,745 crore for the assessment years 2014-15 to 2016-17. The total demand from the Income Tax department reached ₹3,567 crore, sparking a legal battle challenging the taxation of political parties based on gross receipts.
Senior advocate AM Singhvi argued vehemently against the tax demands, asserting that political parties should not be subject to taxation based on gross receipts as they are not profit-making organizations. Solicitor General Tushar Mehta clarified that the tax demands, exceeding ₹3500 crore, were part of a "block assessment" covering the past seven years and were not directly related to pending appeals in the Supreme Court.
The Supreme Court, while scheduling the case for further hearings, noted the Income Tax department's decision to suspend coercive measures against the Congress. This concession aims to allay concerns raised by the Congress regarding the potential impact of tax notices on the level playing field during the ongoing Lok Sabha polls. The court's order provides reassurance to the Congress, affirming that no coercive steps will be taken regarding the substantial tax demands during this critical period.
Source : Business Line
Tags : Tushar Mehta , General Elections , Congress , Supreme Court , tax demands , AM Singhvi , Income Tax department , coercive action ,
Summary : In a significant development, the Income Tax department has announced its decision to refrain from taking coercive measures against the Indian National Congress amidst tax demands amounting to approximately ₹3500 crore. This decision, made during a Supreme Court hearing, follows fresh notices from the Income Tax department raising substantial tax demands against the Congress. The department's concession aims to avoid disruptions during the ongoing General Elections. The Congress has challenged the tax demands, asserting that political parties should not be taxed based on gross receipts.
Adversitement