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The Hindu
The Hindu
National
The Hindu Bureau

After reprieve on I-T notice, Congress says issue larger than tax demand

The Congress on April 1 welcomed the reprieve it got from the Income Tax (I-T) department on the tax demand of ₹3,500 crore, but said the entire episode raises issues that are larger than a tax demand.

Taking to X, former Finance Minister P. Chidambaram asked if demands can be raised on a political party when all political parties are exempt from income tax. “I welcome the Solicitor General’s statement in Court that no coercive steps will be taken to enforce the Income Tax demands on the Congress party. There are issues larger than a demand for income tax,” Mr Chidambaram said.

“Can a demand be raised on a political party for tax, interest and penalty that will effectively cripple the party? Can such demands be made during the period when national elections are held to elect a new Lok Sabha? Can free, fair and democratic elections be scuttled by raising preposterous demands for humongous sums of money? What will prevail? Democratic elections or tax demands,” he asked.

Rajya Sabha member and senior advocate Vivek Tankha, who had appeared for the Congress in the Income Tax Appelate Tribunal, said “truth ultimately wins”.

“Gratitude to the Supreme Court for protecting the spirit of democracy and ensuring level playing field between political parties. Was not possible if @INCIndia had not fought #taxterrorism before our courts. Demand of 3,500 crore stands deferred until July 2024, subject to final decision by SC (sic),“ Mr Tankha said in a post on X.

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