Congress president Rahul Gandhi and his mother Sonia Gandhi today received a severe setback from the Delhi High Court, as the Court dismissed their pleas challenging the reopening of their tax assessment in connection with Natinal 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 suggested both of them that they may 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.
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. Both of them facing this case following the petition filed by BJP MP Subramanyan Swamy in 2012.