Demand of Rs 3500 Crore under Income Tax Act against INC, No Coercive Action can be taken till Disposal of Pending Civil Appeal: Supreme Court [Read Judgement]

The Supreme Court held that coercive action cannot be taken against the Demand of 3500 Crore under the Income Tax Act, 1961 against the Indian National Congress (I) / All India Congress Committee ( INC ) till the disposal of the pending civil appeal.

The application has been filed by being aggrieved by the findings arrived at by the Delhi High Court in the impugned order(s). During the pendency of the matter before the Court, several demands were made in March 2024.

The Solicitor General appearing for the respondent/Department submitted that there is no dispute that on several dates in March 2024, demands have been made as against the appellant(s) herein totaling approximately Rs.3,500 crores. He further submitted, be that as it may, the issues that arise in these appeals have yet to be adjudicated upon but having regard to the impending elections, the respondent Department does not wish to precipitate the matter since no coercive steps shall be taken by the respondent/Department concerning the aforesaid total demand of Rs.3,500 crores approximately.

It was stated that a date may be notified for hearing these appeals in the second week of July 2024  and till then, the appellant(s) herein can have no apprehension regarding any coercive step being taken about the aforesaid demand.

Dr. Abhishek Manu Singhvi, senior advocate submitted that given the categorical statement made by the Solicitor General, no orders need be made on the application seeking a stay of the findings arrived at by the High Court.

A two-judge bench comprising Justice B V Nagarathna and Justice Augustine George Masih held that “no coercive action of any nature shall be taken against the appellant(s) till the next date of hearing.”

To Read the full text of the Order CLICK HERE

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