Won't take coercive step to recover Rs 3,500 crore from Congress during Lok Sabha polls, I-T department tells SC

The I-T department has also urged the court to post the matter for hearing in the month of June.

New Delhi: Solicitor General Tushar Mehta on Monday told the Supreme Court that the Income Tax authorities would not take any coercive action against the Congress party till July 24 with regard to the demand of Rs 3,500 crore, in view of upcoming Lok Sabha elections.

Appearing for the I-T authorities, Mehta submitted before a bench of Justices B V Nagarathna and Augustine George Masih that since the general elections are going on, the department would not undertake recovery proceedings or any coercive action.

The bench recorded the statement of Mehta and fixed the matter for hearing on July 24.

Senior advocate A M Singhvi for the Indian National Congress contended the petitioner was only a political party, not a profit-making organisation. He said a sum of Rs 135 crore has already been attached.

Mehta said there was a demand of Rs 3,500 crore.

The court, however, recorded, "Issues arising in these appeals are yet to be adjudicated upon. But having regard to the prevailing situation, the department does not wish to precipitate matter inasmuch as no coercive steps shall be taken by the department over the demand of Rs 3500 Cr approximately till the next date of hearing".

On March 28, the Delhi High Court rejected petitions by the Congress challenging the initiation of tax reassessment proceedings against it for a period of four years by the authorities.

Earlier, the HC also dismissed the Congress party's plea that had challenged initiation of reassessment proceedings pertaining to assessment years 2014-15 to 2016-17.