The Central Board of Direct Taxes (CBDT) has withdrawn a controversial circular just four days after issuing it. The circular had prompted the Congress to demand immediate relief for its leaders, including party president Rahul Gandhi and UPA chairperson Sonia Gandhi in the National Herald case.
Earlier, the government had moved to tax shares received by companies below the fair market value under Section 56(2)(viia) of the Income Tax Act. Under the section, returns filed by Sonia, Rahul and Oscar Fernandes for the financial year 2010-2011 were sought to be reopened by the I-T department and they were sought to be