National Herald case: YI asked to deposit Rs 10 cr in IT case

The Delhi High Court today directed Young Indian Pvt Ltd, in which Congress president Rahul Gandhi and his mother Sonia Gandhi are major stakeholders, to deposit Rs 10 crore in the Rs 249.15 crore income tax proceedings against it.

A bench of Justices S Ravindra Bhat and A K Chawla directed the company -- earlier summoned along with Sonia Gandhi and Rahul Gandhi as an accused by a trial court in the National Herald misappropriation of assets case -- to deposit half the amount with the Income Tax department before March 31 and the remaining by April 15.

The high court said subject to deposit of the amount, the tax authorities shall not enforce the demand of Rs 249.15 crore made on the company for the assessment year 2011-12.

The high court also sought the IT department's response on the company's plea challenging the demand and the proceedings emanating from it and listed the matter for further hearing on April 24.

The company had on March 14 moved the high court seeking a stay on the income tax proceedings against it.

YI, which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all the shareholding of Associated Journal Ltd (AJL), the owner of the National Herald newspaper.

The IT department's move followed its probe on a complaint alleging that the Gandhis had misappropriated AJL's assets while transferring their shares to the newly formed Young Indian.