The Delhi High Court has asked Young Indian Private Limited to deposit Rs. 10 Crore in the Rs. 249.15 crore Income Tax proceedings against it in National Herald Case.
The Congress president Rahul Gandhi and his mother Sonia Gandhi are major stakeholders in the Company.
The petitioner has challenged the validity of two office memoranda issued on 29.02.2016 and 31.07.2017. It is contended that the demand made to the tune of approximately `249 crores is prima facie untenable having regard to the method of valuation adopted by the Assessing Officer (AO), who rejected the surveyor report made under Section 142A of the Income Tax Act without proper reasoning.
A division bench comprising of Justice S. Ravindra Bhat and Justice A.K Chawla has asked the petitioner to deposit `10 crores within four weeks. 50% of this or `5 crores should be deposited on or before 31.03.2018 and the balance before 15.04.2018.
The Petitioner Young Indian had approached the High Court seeking a direction to stay the recovery of the demand of tax and interest of Rs 249.15 crore raised in pursuance to a notice of December 27, 2017, issued under Section 156 of the Income Tax Act for the assessment year 2011-12. It had also challenged the order of the income tax authorities rejecting the firm’s application and sought a stay on the direction to pay Rs 49.83 crore, that is 20 percent of the total disputed outstanding demand.
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