n a big jolt to the Congress leadership, the Delhi High Court on Monday dismissed the plea of Sonia Gandhi, Rahul Gandhi and Oscar Fernandes challenging the reopening of their tax assessments for 2011-12.
The Income Tax Department had issued orders to re-assess their tax returns, after finding that the Congress leaders did not reveal their directorship in the firm Young Indian, which took over the National Herald newspaper publishing firm Associated Journals Limited (AJL). Dismissing the petitions, the Bench comprising Justices S Ravindra Bhat and AK Chawla said that the Income Tax Department has the right to issue such orders and directed the petitioners to approach the appropriate forum, if aggrieved by the Income Tax's order.
Sonia Gandhi was represented by former Finance Minister and senior lawyer P Chidambaram and Rahul Gandhi was represented by noted tax lawyer Arvind Datar. The Court has already rejected the Congress leaders' demand for restraining media houses from publishing the news related to Income Tax process in the National Herald cases.
The Income Tax Department had in December 2017, fined Young Indian Rs 250 crore for suppressing the taxable income of Rs 414 crore in 2011-2012. After this Income Tax issued orders in March 2018 for re-assessing the income of the leaders as they had suppressed the directorship in Young Indian.
The High Court had on August 16 reserved its order on the pleas of the three leaders after the Income Tax Department had contended that Rahul Gandhi's tax assessment for 2011-12 was reopened as material facts were concealed. The bench had orally asked the tax department not to take any coercive step against Sonia, Rahul and Fernandes till pronouncement of its verdict.
Appearing for the Income Tax Department, Additional Solicitor General Tushar Mehta 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. Congress leaders accused Income Tax for "coercing" and acting on the complaints of the BJP leader Subramanian Swamy.
The Income Tax Department also found that the Congress claim of giving Rs 90 crore to AJL was bogus and this claim was floated to acquire the assets of AJL, which has more than Rs 5000 crore land assets across the country. The tax department had said the shares Rahul has in YI would lead him to have an income of Rs 154 crore and not about Rs 68 lakh, as was assessed earlier.