Delhi HC Rejects Sonia, Rahul’s Pleas Challenging Tax Reassessment

In the National Herald case, the court observed that the income tax department has power to reopen tax proceedings.

In a setback to Sonia Gandhi and Rahul Gandhi in the National Herald case, the Delhi High Court on Monday, 10 September, rejected their pleas challenging the income tax notice seeking tax reassessment for the financial year 2011-2012.

The court observed that the income tax department has powers to reopen tax proceedings related to the transactions between National Herald and Young Indian – and that the petitioners can approach it with their grievances.

The former Congress president Sonia Gandhi and party leader Oscar Fernandes had on 13 August moved the court. A similar plea was filed by Congress president Rahul Gandhi.

The pleas were regarding the Young Indian-National Herald transactions in a case filed by BJP leader Subramanian Swamy. The case was filed against Sonia and Rahul in November 2012 alleging fraud and criminal misappropriation.

The pleas were listed for hearing before a bench of Justice S Ravindra Bhat and Justice AK Chawla. The same bench had earlier refused interim relief to a plea filed by lawyers of Rahul Gandhi who sought restraint on reportage of the case on 8 August.

The Arguments

Additional Solicitor General A Tushar Mehta, who represented the income tax department, argued that tax assessment on Rahul Gandhi had been reopened as he suppressed the information that he was a director in Young Indian since 2010. The income tax department further claimed that the All India Congress Committee gave Rs 99 crore to Young Indian – which had Rahul and Sonia as major stakeholders.