Delhi HC refuses to grant any interim relief to Rahul Gandhi in National Herald case

The Delhi high court on Wednesday refused to grant any interim relief to Congress president Rahul Gandhi in Income Tax reassessment notice related to the National Herald case.

A bench of Justice S Ravindra Bhat and Justice AK Chawla also rejected Rahul Gandhi’s counsel plea seeking restraint on publishing news by various media organisations on the case.

Rahul Gandhi has moved the court challenging a notice issued against him by Income Tax Department seeking to re-open his tax assessment for financial year 2011-12 related to the transactions between National Herald and Young India Pvt Ltd (YI).

Rahul Gandhi and his mother Sonia Gandhi are major stakeholders in Young India which has acquired Associated Journals Limited (AJL). National Herald newspaper was published by AJL.

Rahul Gandhi’s counsel has requested the court to grant interim relief from any coercive steps related to recovery by I-T department.

Additional solicitor general Tushar Mehta, who was representing the I-T department, told the court that the tax department has re-opened tax assessment against Rahul Gandhi as he has suppressed information that he was a director in Young India.

Rahul Gandhi’s counsel said there was no tax liability as he did not receive any income through



it.

The bench has listed the matter for further hearing on August 14.

Earlier in March, the company Young India requested the court to stay the recovery of tax and interest of Rs 249.15 crore raised in pursuance to a December 27 2017 notice issued under section 156 of the IT Act for the assessment year 2011-12.

The company has submitted that it is a charitable firm and does not have any income and that Income Tax authorities have wrongly raised a demand of Rs 249 crore for the assessment year 2011-12.

On March 19, the Delhi high court directed Young Indian to deposit Rs 10 crore in the Rs 249.15 crore income tax proceedings against the firm.

Bharatiya Janata Party leader Subramanian Swamy had filed a complaint about “cheating” in the acquisition of AJL, which published the National Herald newspaper, by Young Indian, “a firm in which Sonia and Rahul Gandhi each own a 38 per cent stake”.

Swamy had accused them of allegedly conspiring to cheat and misappropriate funds by paying only Rs 50 lakh, by which Young Indian Pvt Ltd obtained the right to recover Rs 90.25 crore which AJL owed to the Congress.

Former Congress president Sonia Gandhi and her son Rahul Gandhi, party leaders Motilal Vora, Oscar Fernandes, Suman Dubey, Sam Pitroda and Young Indian are accused in the case.