The Delhi High Court on Monday dismissed pleas challenging the reopening of tax assessment of Congress president Rahul Gandhi and his mother Sonia Gandhi in connection with the National Herald Case. The decision paves the way for the Income Tax department to reopen the tax assessment for the Gandhi family members and Oscar Fernandes for the financial year 2011-12.
The Delhi High Court on Monday dismissed pleas challenging the reopening of tax assessment of Congress president Rahul Gandhi and his mother Sonia Gandhi in connection with the National Herald Case. The decision paves the way for the Income Tax department to reopen the tax assessment for the Gandhi family members and Oscar Fernandes for the financial year 2011-12.
The court asked Sonia and Rahul Gandhi to raise their objections with the Income Tax authorities in the matter. A bench of Justices S Ravindra Bhat and A K Chawla said, “The writ petitions have failed”. The bench also dismissed the petition of Congress leader Oscar Fernandes who too had challenged the reopening of his tax assessment for the same year (2011-12), PTI reported.
During the hearing of the case, last month, former Congress chief Sonia Gandhi had told the Delhi High Court that the debt of Rs 90 crore of Young Indian company, when converted into equity, would not result in any income for levying the tax. Young Indian (YI), which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all shareholdings of Associated Journals Limited (AJL), which owns National Herald newspaper. In this process, YI had also acquired AJL’s debt of Rs 90 crore.
The IT department’s 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.
The court asked Sonia and Rahul Gandhi to raise their objections with the Income Tax authorities in the matter. A bench of Justices S Ravindra Bhat and A K Chawla said, “The writ petitions have failed”. The bench also dismissed the petition of Congress leader Oscar Fernandes who too had challenged the reopening of his tax assessment for the same year (2011-12), PTI reported.
During the hearing of the case, last month, former Congress chief Sonia Gandhi had told the Delhi High Court that the debt of Rs 90 crore of Young Indian company, when converted into equity, would not result in any income for levying the tax. Young Indian (YI), which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all shareholdings of Associated Journals Limited (AJL), which owns National Herald newspaper. In this process, YI had also acquired AJL’s debt of Rs 90 crore.
The IT department’s 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.