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.
