The Delhi High Court on Monday dismissed Congress President Rahul Gandhi and his mother Sonia Gandhi's plea challenging the Income Tax notice seeking tax reassessment for the financial year 2011-2012.
However, the court clarified that the Gandhis could use their rights as the assessee and take up their grievance with the Income Tax authorities.
The order of a bench came while it was hearing the plea of Rahul, Sonia Gandhi and her party colleague Oscar Fernandes against teh March I-T notice seeking tax reassessment. They have allegedly not disclosed their income earned through Young Indian Pvt Ltd (YI) for the year 2011-2012.
The I-T department has told the court that they have concealed facts for evading tax.
"The reference to the monetary nature of the transaction i.e. fair market value, certified by the auditor, means that the promoters and shareholders of the company visualize that the shares of YI, a not-for-profit company, can increase, depending on its activities and income derived by it," the court said.
"This court is of opinion that the assessees' argument about nondisclosure of their interest upon acquiring the shares is unpersuasive," said the bench.
The court also rejected the Sonia Gandhi's submission that Income Tax department had mala fide intention in sending the reassessment notice.
Earlier in March, Young Indian requested the court to stay the recovery of tax and interest of Rs 249.15 crore raised in pursuance to a December 27, 2017 notice issued under section 156 of the IT Act for the assessment year 2011-12.
The company has submitted that it is a charitable firm and does not have any income and that Income Tax authorities have wrongly raised a demand of Rs 249 crore for the assessment year 2011-12.
On March 19, the Delhi High Court directed Young Indian to deposit Rs 10 crore in the Rs 249.15 crore income tax proceedings against the firm.
Swamy had accused them of allegedly conspiring to cheat and misappropriate funds by paying only Rs 50 lakh, by which Young Indian Pvt Ltd obtained the right to recover Rs 90.25 crore which AJL owed to the Congress.
The other accused in the case are Motilal Vora, Suman Dubey, Sam Pitroda and Young Indian.
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