Sonia and Rahul Gandhi. Photo: PTI
Sonia and Rahul Gandhi. Photo: PTI

National Herald case: SC allows tax reassessment of Sonia, Rahul

Any order passed by the income tax department will be subject to the final order of the apex court

New Delhi: The Supreme Court (SC) on Tuesday adjourned till 8 January a legal challenge to an income tax (I-T) reassessment in connection with the National Herald case.

The court, however, allowed the tax department to carry out the reassessment but said any order passed by it would be subject to the final order of the apex court.

Congress president Rahul Gandhi and former president Sonia Gandhi have challenged a Delhi high court order refusing to grant them relief against reopening of their income tax assessments for 2011-12.

On 10 September, a bench of justices S. Ravindra Bhat and A.K. Chawla of the Delhi high court dismissed a challenge to review the tax assessments of the Gandhis in connection with the National Herald newspaper, saying material facts had been concealed.

The Congress leaders had moved the Delhi High Court after the I-T department served them notice in March saying their tax filings were set to be reviewed.

The two Congress leaders, along with Young India Pvt Ltd, in which they were directors, were faced with an investigation by the tax department for transactions dating back to 2011-12 after the Delhi High Court allowed it in 2017.

The case at that time was based on a private criminal complaint lodged by Bharatiya Janata Party (BJP) leader and member of Parliament Subramanian Swamy, alleging cheating, conspiracy and criminal breach of trust in the acquisition of Associated Journals Ltd (AJL), the publisher of National Herald newspaper, by Young India.

The I-T department had already issued a demand notice for 249.15 crore to Young India for the assessment year 2011-12.

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