Congress spokesperson Abhishek Singhvi alleged that government agencies by proxy were engaging in distorted, slanted misinformation possibly bordering on contempt.
"This shows the unambiguous, clear insecurity and vindictive approach," he said hours after the Delhi High Court declined to stay income tax proceedings against Young Indian Pvt Ltd in the National Herald case, which involves Congress leaders Sonia Gandhi and Rahul Gandhi.
Singhvi said he wondered if the government has better things to do or focus on governance in the country than to circulate unsigned notes of briefing to the media "which are actually campaigns of misinformation and distortion".
"Yes, we understand that the ruling party wants to indulge in this campaign of misinformation only because either they want to supply information to their proxies who are fighting us in court or they do not want to go by the facts because they are scared of the fact," he said.
"In view of the matter, because of that, I withdrew the writ," he said.
AICC in-charge of communications department, Randeep Surjewala, said Young Indian had raised certain fundamental jurisdictional issues challenging the authority of Income Tax authorities and the Delhi High Court directed IT authorities to decide all issues with IT department and satisfied with it, Young Indian withdrew the petition.
"No one can withdraw a single rupee of profit, salary or dividend from it or benefit from it any manner as per the Companies Act. We are proud of protecting this important symbol of the freedom struggle and will always protect this trust of people of India.
"Witch hunt or malice of the current BJP government will not deter us from upholding our bounden duty to the nation," he said.
"We will apologise to you if the order shows this. Is it not contempt of court? Some of you are told to publish that the order says Sonia Gandhi and Rahul Gandhi have been asked to appear.
"This is all government agencies are doing, feeding the press misinformation when our grievance is known to all...Is this fair reporting, is this fair for the government agencies," he asked.
Singhvi said the National Herald stood up for certain ideals and the Congress fully supports with pride this initiative.
On the IT case involving the newspaper, he said, nobody has benefited financially from it as it is registered as a Section 25 'Not for Profit' company.
The Act prohibits paying out dividend and giving of pecuniary perks as it is a Section 25 Company and no financial gain is possible, he said.
Explaining the case, he said the Income Tax authorities had sent out a notice in 2014 while reopening a six-year- old notice to the company owning the newspaper and claimed that it had no jurisdiction to reopen that after a six-year period.
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