Income-Tax Dept Will Not Recover Rs 3500 Cr From Congress Till Lok Sabha Elections: Centre Tells SC

Income Tax department told the Supreme Court that income tax department will not take any steps to recover Rs 3500 crores from Congress party till after the Lok Sabha elections

Senior Advocate AM Singhvi appearing for Congress told the court that we are not a profit making organisation, only a political party.

Source : PTI

Solicitor General Tushar Mehta appearing for Income Tax department told the Supreme Court that income tax department will not take any steps to recover Rs 3500 crores from Congress party till after the Lok Sabha elections so that "there is no problem to any political party."

SG Mehta told the top court that the impugned judgment is of 2016 and till the matter is heard, the I-T department will not undertake recovery or any coercive steps as elections are going on. He requested the bench to list the  matter in the second week of June.

Senior Advocate Abhishe Manu Singhvi appearing for Congress told the court that we are not a profit making organisation, only a political party. He further said that 135 crores have already been collected by attachment of properties by the I-T department.

At this, SG Mehta said that there is a lot to be said on the merits of Congress's case as there is a demand of Rs 3500 crores.

Congress moved Supreme Court after the Delhi High Court rejected its petitions challenging the reassessment proceedings initiated by the Income Tax department for 7 years. After all seven petitions by Congress were rejected. Following which, the Rs 3500 crore demand was raised by the Income Tax Department for “unaccounted transactions” between the period 2014-2021. 

Congress filed seven writ petitions against tax department, which is seeking to conclude the ongoing reassessment for seven financial years (2013-14 to 2020-21) by March 31. 

In the order, the Delhi HC had noted that on a prima facie examination it was evident that the Income Tax department appears to have collated substantial and concrete evidence warranting further scrutiny and examination under the I-T Act.

”We consequently find no justification to interdict the assessment proceedings at this belated stage by invoking our jurisdiction under Article 226 of the Constitution. However and whether the asserted delay in commencement of proceedings would be fatal to the assessment itself is a question that we leave open to be urged at an appropriate juncture,” the court said.

The high court bench noted that the material in Satisfaction Note as drawn by the accessing officer makes detailed references to unaccounted transactions with respect to the Lok Sabha Elections of 2019 and MP Assembly Elections 2018 and 2013. The said note also carries material seeming to suggest payments and contributions made by government departments and corporations, liquor manufacturers, industry entities and individuals to the Congress Party. 

According to the court order a person named P V Sunil accepted in his statement to the I-T department that he had paid cash amounts at 24, Akbar Road.