National Herald Case: Delhi HC refuses to Stay IT Proceedings against Young Indian Pvt Ltd

Sonia Gandhi - Rahul Gandhi

In a major setback to Congress Leaders Sonia Gandhi and Rahul Gandhi, the Delhi High Court allowed the IT officers to continue with the Income Tax investigation against Young Indian Pvt Ltd in the National Herald case.

“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.

Consequently, the two leaders along with Young India Pvt. Ltd, in which they are directors, will face income tax proceedings for transactions for the year 2011-12. Young India had approached the court seeking quashing of the I-T investigation.

Dismissing the petition, the bench 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.

Senior Advocate Abhishek Manu Singhvi, appearing for the Company, withdrew the petition which was allowed by the court that termed it “dismissed as withdrawn”.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 proceedings were initiated in consequent to a private criminal compliant initiated by the BJP MP Subramanian Swamy wherein he 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.

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