The Delhi High Court, last day dismissed petitions by the Congress President Rahul Gandhi, Congress leaders Sonia Gandhi and Oscar Fernandes challenging the income tax notices sent to them in connection with the National Herald case.
On 16 August, the high court had reserved its verdict on the pleas of the three leaders after the Income Tax Department had contended that Rahul’s tax assessment for 2011-2012 was reopened as material facts were concealed.
A division bench comprising Justices Ravindra Bhatt and A K Chawla had asked the tax department not to take any coercive step against the Gandhis and Fernandes till the pronouncement of the judgment.
Congress leader and senior Advocate P Chidambaram, appearing for Sonia, had said he had faith in the oral statement made by Additional Solicitor General Tushar Mehta, who had argued that the Congress leaders had alleged “mala fide” on the part of the tax department but had not made any averments in this regard.
The court on Monday also said that the tax department has the authority to reopen tax proceedings, and that the petitioners can approach the department with their grievances.
The proceedings were initiated in consequent to a private criminal compliant initiated by the BJP MP Subramanian Swamy wherein he had accused the Gandhis and others of conspiring to cheat and misappropriate funds by paying just Rs 50 lakh, through which YI had obtained the right to recover Rs 90.25 crore which the Associate Journals Limited (AJL) owed to the Congress party.
Last year, the Young Indian (YI) had approached the High court seeking a direction to stay the IT proceedings and quashing of re- assessment notices issued against it with regard to the National Herald misappropriation of assets case. The company was issued notices regarding the assessment year 2011-12. However, the petition was also dismissed by the Court and allowed the IT officers to continue with the Income Tax investigation.
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