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The Congress party has claimed a significant victory in its battle against what it terms "tax terrorism," following a reprieve from the income tax department regarding tax demand notices totaling Rs 3,500 crore.

 

This development comes after the Income Tax department assured the Supreme Court that it would refrain from taking coercive action against the Congress, particularly in light of the upcoming Lok Sabha elections. The party's plea against various tax demand notices has been scheduled for a hearing on July 24.

 

Senior advocate Abhishek Singhvi, representing the Congress party, expressed appreciation for the Income Tax department's decision, labeling it as "gracious."

 

Congress leader Vivek Tankha, who is actively involved in the legal proceedings, emphasized the legitimacy of the party's stance and highlighted the importance of the court's intervention in ensuring a fair playing field.

 

Tankha underscored the significance of perseverance, noting that continuous efforts led to the relief granted by the Supreme Court. He emphasized the party's consistent fight against what it perceives as unjust accusations and expressed gratitude to the court for upholding democratic principles.

 

The Congress party had been served notices by the Income Tax authorities amounting to a demand of Rs 3,567 crore due to alleged discrepancies in income tax returns from previous years.

 

The party has accused the BJP government of employing "tax terrorism" tactics by freezing its accounts and seizing funds amassed through small donations, memberships, and crowd-funding initiatives.

 

In response to the Congress's plea, the bench of justices BV Nagarathna and Augustine George Masih recorded the statement of Solicitor General Tushar Mehta, representing the Income Tax department, assuring that no precipitative action would be taken until the final adjudication of the matter, particularly in light of the ongoing election period.

 

Mehta emphasized the need to maintain equity, considering the political nature of the petitioner, and stated that no action for the recovery of the demanded amount would be pursued until the matter is heard post-election. The court took note of the department's stance, acknowledging the approximately Rs 3,500 crore demand and emphasizing the department's decision not to take coercive steps in the current circumstances.