Income Tax Department Delays Coercive Action Against INC Amidst Lok Sabha Election Concerns

The Income Tax Department in India has agreed not to take coercive action against the Indian National Congress (INC) over an income tax demand of around Rs 3500 crores until July 2024 due to the upcoming Lok Sabha elections.

The Department, represented by Solicitor General of India Tushar Mehta, was hearing a civil appeal filed by the Congress party in 2018 against a 2016 Delhi High Court judgment.

The party had moved an interim application seeking stay of recent demand notices issued by the Income Tax Department in March. The Department will defer the coercive steps due to the impending elections.

The Supreme Court recorded the SG’s statement that the issues arising from these appeals are yet to be adjudicated upon, but the department does not wish to precipitate the matter as no coercive steps will be taken until the next date of hearing. The matter is scheduled for hearing on July 24, 2024.