HC rejects Sonia, Rahul’s plea in I-T case

NEW DELHI: Congress President Rahul Gandhi and his mother Sonia Gandhi on Monday failed to get any relief from the Delhi High Court which dismissed their challenge on reopening of their tax assessments for 2011-12.

The rejection of the pleas of the top Congress leaders, including Oscar Fernandes, will pave the way for the Income Tax Department to scrutinise their records for the assessment year 2011-12.

The “writ petitions have to fail,” a bench of Justices S Ravindra Bhat and A K Chawla said while clarifying that the observations in the order with regard to the contentions of the Congress leaders are not conclusive and are recorded for the purpose of disposing of these petitions.

“...The assessees' rights to urge them are reserved in the income tax proceedings,” it said, while “dismissing” the three separate petitions which were decided through a common order.

The income tax probe against the Congress leaders has arisen from the investigation into the private criminal complaint filed by BJP leader Subramanian Swamy before a trial court in connection with the National Herald case.

A tax evasion petition (TEP) was also addressed to the finance minister by Swamy.

In the complaint before the trial court, Sonia, Rahul and others have been accused of conspiring to cheat and misappropriate funds by paying just Rs 50 lakh, through which Young Indian (YI), the notfor-profit organisation, had obtained the right to recover Rs 90.25 crore that the Associated Journals Ltd (AJL) owed to the Congress party.

It was alleged that YI, which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all shareholdings of the AJL, which was running the National Herald

newspaper. In this process, YI had also acquired AJL'S debt of Rs 90 crore.

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. It has already issued a demand notice for Rs 249.15 crore to YI for the assessment year 2011-12.