Rahul Gandhi in Delhi HC against Income Tax Dept’s notice to re-open his tax assessment

Congress President Rahul Gandhi, today, moved the Delhi High Court challenging a notice issued by the Income Tax Department in March 2018 to re-assess his tax liability for the financial year 2011-2012..It is the IT department’s stand that Gandhi suppressed information on his status as a Director of Young Indian Pvt Ltd, which led to tax evasion. Gandhi’s shares in Young Indian allegedly resulted in an income of Rs. 154 crore as opposed to the earlier assessed income of Rs. 68 lakh..Refusing to pass any interim order on Gandhi’s plea, including an order prohibiting any coercive action against him by the IT department, a division bench of Justice S Ravindra Bhat and Justice AK Chawla posted the matter for hearing on August 14..The Court said that it would determine whether Gandhi was under any obligation to disclose his status as a Director in Young Indian..The Court also refused to accept a plea made by Senior Advocate Arvind Datar, appearing for Gandhi, to prohibit the press from reporting the court proceedings..Datar argued that there was no obligation on Gandhi to disclose his interest in Young Indian as it is a “trust like company” having no profit sharing and dividend..On the other hand, Additional Solicitor General Tushar Mehta, appearing for the Income Tax department said,.“This is not a witch hunt. There is cogent material to show the possibility of tax evasion and an investigation under Section 147 of the Income Tax Act, 1971.”.Litigation with respect to a demand notice for Rs 249.15 crore to Young Indian for the assessment year 2011-12 is already pending before the High Court..Young Indian is at the center-stage of what is called the National Herald misappropriation case. It refers to the assignment of Rs. 90 crore loan advanced by the Congress party to Associated Journal Ltd, owner of National Herald, to Young Indian for a consideration of Rs. 50 lakh..Young Indian, controlled by the Gandhi family, holds almost the entire shareholding of Associated Journal.

Rahul Gandhi in Delhi HC against Income Tax Dept’s notice to re-open his tax assessment

Aditi

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