The Delhi high court on monday rejected the pleas of Congress president Rahul Gandhi and his mother Sonia Gandhi difficult the reopening of their tax assessments for 2011-12.
A Bench of Justices A.K. Chawla and S. Ravindra Bhat conjointly dismissed a petition of Congress leader oscar Fernandes, who too had challenged the reopening of his assessment for a similar year (2011-12).
Narrating a brief background concerning the case, the Bench aforesaid a loan amounting to about ₹90 crore was due from Associated Journal restricted (AJL) to the All India Congress Committee.
As the loan amount became irrecoverable, it absolutely was allotted to Yi, a corporation wherever the Gandhis square measure the bulk shareholder, for a consideration of ₹50 lakh.
Had he (Mr. Gandhi) disclosed in his returns or any related documents concerning the event (share acquisition), the first reality would have been on the record,” the Bench noted. “The tax evasion petition filed by BJP leader Subramanian Swamy and investigation reports … constituted tangible material that … even reassessment,” it said.
The IT Department will now scrutinise their records for the assessment year 2011-12.
The main ground on that mr. Gandhi had wanted quashing of the reassessment notice was that no income had escaped assessment. additional solicitor general (ASG) Tushar Mehta, showing for the IT department, had submitted that the clear “reasons to believe” of the AO that the income escaped assessment within the present case aren’t primarily based upon the allotment of shares by AJL to Yi
The re-assessment was resorted to as a result of it had been clear found that “income from different sources” stipulated under Section 56 at liberty assessment with respect to the fair market value of shares assigned to the assessees by Yi on January 22, 2011, he said.
The IT department had argued that at the time once fresh shares were assigned to the assessees, the value of their shares wasn’t ₹100 every but was ₹8,15,708.16 per share.