National Herald Case: Delhi HC Rejects Sonia, Rahul’s Plea Against Income Tax Notice; BJP Says Cong Exposed

The I-T department has told the court that they have concealed facts for evading tax.

New Delhi: In a massive setback, the Delhi High Court on Monday rejected Congress President Rahul Gandhi and his mother Sonia Gandhi’s plea challenging the Income Tax notice seeking tax reassessment for the financial year 2011-2012.

The court said that the I-T department has the right to reopen tax proceedings. The order of a bench came while hearing the plea of Rahul, Sonia Gandhi and her party colleague Oscar Fernandes against March I-T notice seeking tax reassessment. They have allegedly not disclosed their income earned through Young Indian Pvt Ltd (YI) for the year 2011-2012.

National Herald Case: Delhi High Court says Income Tax department has powers to reopen tax proceedings and that the petitioners can approach Income Tax department with their grievances. https://t.co/vqHLzMLTJf

— ANI (@ANI) September 10, 2018

The I-T department has told the court that they have concealed facts for evading tax.

Speaking on the court’s order, BJP spokesperson, Sambit Patra said, “Gandhi family today is known as a family who does tax evasion, a family of corrupts and a family who conspires against law of the land.”

Gandhi family today is known as a family who does tax evasion,a family of corrupts and a family who conspires against law of the land: Sambit Patra,BJP on Delhi HC rejects Sonia Gandhi and Rahul Gandhi’s plea challenging IT notice seeking tax reassessment for FY 2011-2012 pic.twitter.com/NGq2ZEjZYI

— ANI (@ANI) September 10, 2018

On August 8, Congress president Rahul Gandhi had challenged in the Delhi High Court the reopening of his 2011-12 assessment by the tax department for not disclosing that he was a director in a Young Indian company, an accused in the National Herald misappropriation of assets case.

Rahul Gandhi and Sonia Gandhi are major stakeholders in Young Indian which has acquired Associated Journals Limited (AJL). National Herald newspaper was published by AJL.

Earlier in March, Young Indian requested the court to stay the recovery of tax and interest of Rs 249.15 crore raised in pursuance to a December 27, 2017 notice issued under section 156 of the IT Act for the assessment year 2011-12.

The company has submitted that it is a charitable firm and does not have any income and that Income Tax authorities have wrongly raised a demand of Rs 249 crore for the assessment year 2011-12.

YI, which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all the shareholding of Associated Journal Ltd (AJL), the owner of the National Herald newspaper.

The IT department’s move followed its probe on a complaint alleging that the Gandhis had misappropriated AJL’s assets while transferring their shares to the newly formed Young Indian.

BJP MP Subramanian Swamy, in a private criminal complaint filed before a trial court, had accused Sonia Gandhi, Rahul and others of conspiring to cheat and misappropriate funds by paying just Rs 50 lakh, through which the YI had obtained the right to recover Rs 90.25 crore which the AJL owed to the Congress party.

All the accused, also including Motilal Vora, Oscar Fernandes, Suman Dubey, and Sam Pitroda, have denied the allegations levelled against them.

(With agency inputs)