National Herald case: Delhi HC declines to stay I-T proceedings against Young India

The firm withdraws petition after court asks it to approach the income tax assessing officer.

May 12, 2017 01:53 pm | Updated 07:46 pm IST - New Delhi

Congress president Sonia Gandhi and vice-president Rahul Gandhi arrive at the Patiala House Courts complex for a hearing in the National Herald case, in New Delhi on December 19, 2015.

Congress president Sonia Gandhi and vice-president Rahul Gandhi arrive at the Patiala House Courts complex for a hearing in the National Herald case, in New Delhi on December 19, 2015.

The Delhi High Court on Friday declined to stay the income tax proceedings against Young Indian Pvt Ltd in the National Herald case, which involves, Congress leaders Sonia Gandhi and Rahul Gandhi, and asked them to approach the tax authorities.

“We are not inclined to entertain your writ petition. It is better you withdraw it and approach the income tax assessing officer,” a bench of Justices S Muralidhar and Chander Shekhar said.

It also said that the company has not moved the assessing officer raising its grievances, so it should first approach the IT department and submit its documents.

In case it is still not satisfied, the company can move the court thereafter, the bench added.

Sensing the mood of the bench, senior advocate Abhishek Manu Singhvi, appearing for the firm, withdrew the petition which was allowed by the court that termed it “dismissed as withdrawn“.

Young Indian (YI) had approached the high court seeking a direction to stay the IT proceedings and quashing of re- assessment notices issued against it with regard to the National Herald misappropriation of assets case. The company was issued notices regarding the assessment year 2011—12.

The counsel for the Income Tax Department opposed the petition, saying the firm has not moved the assessing officer and hence its plea was not maintainable.

BJP MP Subramanian Swamy, in a private criminal complaint, had accused the Gandhis and others of conspiring to cheat and misappropriate funds by paying just Rs 50 lakh, through which YI had obtained the right to recover Rs 90.25 crore which the Associate Journals Limited (AJL) owed to the Congress party.

 

The Gandhis and other accused —— Motilal Vora, Oscar Fernandes, Suman Dubey and Sam Pitroda —— have denied the allegations levelled against them.

The trial court had summoned them as accused persons, besides Young India on June 26, 2014.

On December 7, 2015 the High Court had rejected their pleas for quashing the summons issued against them by the trial court in the case.

On December 19, 2015, it had granted bail to Sonia, Rahul , Vora, Fernandes and Dubey, who had appeared before it pursuant to summons. Pitroda was granted bail on February 20, 2016 when he had appeared in the court.

The Congress President and the Vice President, Vora (AICC treasurer), Fernandes (AICC general secretary), Dubey and Pitroda were summoned for the alleged offences of dishonest misappropriation of property, criminal breach of trust and cheating read with criminal conspiracy of the IPC.

 

The IT department’s move to issue notices followed its probe on Swamy’s complaint alleging that the Gandhis had misappropriated AJL’s assets while transferring their shares to the newly formed Young India.

According to IT records, 83.3 per cent of Young Indian was held by Sonia and Rahul, 15.5 per cent by Vohra and the remaining 1.2 per cent by Fernandes

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.