Case Law Details
Indian National Congress (I) Vs Commissioner of Income Tax Delhi XI (Supreme Court of India)
The legal battle between the Indian National Congress (INC) and the Commissioner of Income Tax Delhi XI has reached a critical juncture with a demand of Rs 3500 crore under the Income Tax Act. This demand has led to a significant legal confrontation, resulting in an application filed with the Supreme Court of India. The pending civil appeal, bearing crucial implications, awaits adjudication by the apex court.
The application, filed amidst ongoing proceedings in Civil Appeal Nos. 64-65/2018, contests the findings of the Delhi High Court, particularly focusing on paragraph 124 of the impugned order. The urgency of the matter prompted a plea for an expedited hearing, culminating in its listing before the Supreme Court.
During the preliminary hearing, the Solicitor General representing the respondent/Department acknowledged the substantial demands made against INC in March 2024. Despite the looming financial claims, the Solicitor General expressed reluctance to escalate the situation, citing the impending elections as a crucial factor. Consequently, the Department assured that no coercive measures would be pursued until the appeals receive a substantive hearing.
In response, Dr. Abhishek Manu Singhvi, representing INC, highlighted the significance of the Solicitor General’s stance, advocating for a merit-based hearing of the appeals. With both parties’ submissions duly recorded, the Court refrained from issuing any interim orders, considering the assurance against coercive actions until the scheduled hearing in July 2024.
The Supreme Court’s intervention in the ongoing dispute between INC and the Income Tax Department underscores the complexity and gravity of the legal issues at hand. By temporarily halting coercive actions, the Court aims to ensure a fair and thorough examination of the appeals’ merits. The upcoming hearing in July 2024 holds the promise of resolving the contentious matter and providing clarity on the substantial financial claims against INC.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
This application has been filed in Civil Appeal Nos. 64-65/2018, which are pending adjudication before this Court inasmuch as leave has been granted by this Court in the special leave petitions preferred by the petitioner(s)/appellant(s) herein.
The application has been filed by being aggrieved by the findings arrived at by the Delhi High Court in the impugned order(s) and particularly having regard to the finding in paragraph 124 of the impugned order.
During the pendency of this matter before this Court, several demands were made in the month of March, 2024. Therefore, the appellant sought for an urgent hearing of the application but since the notified date was today, the matter has been listed today.
At the commencement of the hearing on this application, learned Solicitor General appearing for the respondent/Department submitted that there is no dispute that on several dates in the month of March, 2024, demands have been made as against the appellant(s) herein totalling approximately Rs.3,500 crores. He further submitted, be that as it may, the issues which 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 inasmuch as no coercive steps shall be taken by the respondent/Department with regard to the aforesaid total demand of Rs.3,500 crores approximately.
Learned Solicitor General, therefore, submitted 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 with regard to the aforesaid demand.
It is further recorded that the aforesaid total demand of Rs.3,500 crores approximately, is not strictly relatable to the controversy in these appeals and they touch upon several demands, which arise as against the appellant(s) herein.
By way of response, Dr. Abhishek Manu Singhvi, learned senior advocate submitted that in view of categorical statement made by learned Solicitor General at present no orders need be made on the application seeking stay of the findings arrived at by the High Court and particularly in paragraph 124. He, therefore, submitted that since the submissions of learned Solicitor General have been recorded, in the circumstances, the appeals may be heard on merits.
The aforesaid submissions are placed on record.
In view of the submission by way of a concession made by the respondent, no coercive action of any nature shall be taken against the appellant(s) till the next date of hearing.
It is needless to observe that the aforesaid concession made by the learned Solicitor General on behalf of the respondent/Department is without prejudice to all rights and contentions that it may have as against the appellant(s) herein and vice versa.
Hence, list these appeals including this application on 24.07.2024.
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