National Herald case: Delhi HC orders Young Indian to deposit Rs 10.cr in Income Tax recovery notice of Rs.250 crores

In the National Herald case, the Delhi HC directs Young Indian to deposit Rs.10 crores first in their petition against the Income Tax order

In the National Herald case, the Delhi HC directs Young Indian to deposit Rs.10 crores first in their petition against the Income Tax order
In the National Herald case, the Delhi HC directs Young Indian to deposit Rs.10 crores first in their petition against the Income Tax order

In a big setback to Sonia Gandhi and Rahul Gandhi in the National Herald case, the Delhi High Court (HC) on Monday directed their company Young Indian to deposit Rs.10 crores ($1.67 million) first in their petition against Income Tax (IT) recovery notice of Rs.249.15 crores. The bench of Justices S Ravindra Bhat and A K Chawla directed the company to deposit half the amount with the Income Tax department before March 31 and the remaining Rs.5 crores by April 15th.

The IT department has declared that Congress party’s claim of giving Rs.90 crore loans to the newspaper was a total sham and a wrong claim to facilitate Gandhi family-controlled company Young Indian to dubiously take over the ownership of the lands and buildings across India.

The High Court said that subject to the deposit of the amount, the tax authorities shall not enforce the demand of Rs.249.15 crores made on the company for the assessment year 2011-12.  The High Court also sought the IT department’s response to Young Indian’s (YI) plea challenging the demand and the proceedings emanating from it and listed the matter for further hearing on April 24.

Senior advocate Arvind Datar, appearing for Young Indian, told the court that it will have extreme difficulty in raising Rs.10 crores and sought the amount to be fixed at Rs.7.5 crores.  He said that the amount was being collected from contributions by individuals and it would, therefore, be tough to get more money.  He also urged the bench to allow the company to deposit the amount in court, saying it was extremely difficult to get a refund from the IT department.

Advocate Ashish Jain, representing the IT department, opposed the oral pleas made on YI’s behalf and said the company had to actually deposit Rs.49 crores, 20 percent of the demand, for its appeal to be heard.  The bench refused to grant both the pleas made orally on behalf of Young Indian and directed it to deposit Rs.10 crores with the IT department. The High Court also directed the tax authorities to expeditiously hear YI’s appeal against the assessment order.

On December 27, 2017, the Income Tax Department’s Assessment Order found that Young Indian had hushed up a taxable income[1] of more than Rs.414 crores ($40 million). While Congress leadership has kept silent[2] on this devastating Income Tax Order exposing the frauds in the National Herald case, after some weeks, BJP leader and main petitioner Subramanian Swamy produced a copy of this Income Tax Order[3] in the trial court. Even the advocates representing Sonia and Rahul were unaware of this Income Tax Order.

The IT department has declared that Congress party’s claim of giving Rs.90 crore loans to the newspaper was a total sham and a wrong claim to facilitate Gandhi family-controlled company Young Indian to dubiously take over the ownership of the lands and buildings across India. The 105-page Income Tax Assessment Order has declared that Sonia and Rahul Gandhi controlled Young Indian’s actual taxable income is more than Rs.414 crores and canceled the firm’s tax exemption certificate.

The Income Tax, in its detailed Assessment Order described the takeover of erstwhile National Herald newspaper publishing company Associated Journals Limited (AJL) by Young Indian as “premeditated scheme of tax evasion”, adventure, fraudulent, involved in hawala nature activities etc.

After this order, IT fined and issued a recovery notice for Rs.249.15 crores ($40 million) from Young Indian. The company controlled by Sonia and Rahul with 76 percent shares, has approached the High Court seeking a direction to stay the recovery of the demand of tax and interest of Rs 249.15 crores, raised following a notice of December 27, 2017, issued under section 156 of the I-T Act for the assessment year 2011-12.

It has also challenged the order of the IT authorities rejecting the firm’s application and sought a stay on the direction to pay Rs.49.83 crores ($8 million), that is 20 per cent of the total disputed outstanding demand.

Note:
1. The conversion rate used in this article is 1 USD = 65 Rupees.

References:

[1] IT fixes Sonia-Rahul firm Young Indian for Rs.414 crore gains from National Herald fraudsJan 20, 2018, PGurus.com

[2] The silence of Congress on the Income Tax Assessment Order in National Herald case is deafeningJan 24, 2018, PGurus.com

[3] National Herald case: Read 105-page IT Assessment Order against Young Indian exposing Rs.414 crores gainJan 22, 2018, PGurus.com

Team PGurus

17 COMMENTS

  1. WILL ANY COMMON PERSON BE ALLOWED TO PAY 5% OF TAX DEMAND 0F 220 CRORES AND WHY GANDHIS SHOULD BE AN EXCEPTION.
    THIS RAISES 1000S OF DOUBTS WHEATHER JUDICIARY IS FAIR,OTHERWISE THEY SHOULD HAVE ASKED GANDHIS TOO DEPOSIT 20% AS PER DEMAND AND STANDARD PROCEDURES.
    WILL JUDICIARY WAKE UP

  2. TO DR.SUBRAMANIAN SWAMY, SIR,KINDLY SEE THAT SOME OF THE PANTED OFFICIALS OF P.CHIDAMBARAM,SOES NOT GOOF-UP, AND GET A BAD NAME TO YOU,AS IT HAPPENED IN 2G AND MARAN TELEPHONE EXCHANGE CASES.
    PRESSURE SHOULD BE BUILT SO THAT AT LEAST 3 TO 4 CASES,GANDHIS AND CHIDAMBARAMS ARE SENT TO JAIL FOR MINIMUM 7 YEARS,SO THAT INDIAN POITICS ARE CLEANED

  3. Normal process of law. A deposit taken and stay granted. Court will in due course decide. These are all Appealable Orders and one should not reach conclusion until the case is final. Remember how the media got an egg on its face in the Raja Case, though that legal process there to is also not complete. Would like to see more fact in your articles rather than catchy allegations. You website sounds more like Subramaniam Swamy’s making his’sensational exposures’.

  4. Kudos to Mr Subramanyaswami who exposed this scam and initiated legal proceedings to enable the Government to get their legitimate Tax dues. Unless for him, this would not have come to light. It seems to me,( I am not sure how far I am correct) that both the mother and the son have deliberately amazed wealth by wrong doings, especially at a time when they have the max. clout with the Government. Instead of being a clean citizen, they have proved to be otherwise. None of their family members right from Motilal Nehru kept their life clean from any criticism of whatsoever nature. Compared to the life lead by eminent leaders like Rajendra Prasad, Dr Radhakrishnan, Sardar Vallabhai Patel, Rajagopalachariar, kamaraj and many others, members of the Nehru family lead a lavish life with wealth earned in a different manner. Think twice before we cast our votes in the next election. I am unable to even imagine what would be the fate of our Country if they come back to power. Thank GOD, leaders from other political parties who are trying to form an alliance for alternative to BJP is not prepared to accept Rahul Gandhi as their leaders. Wise and good decision.

  5. All like minded citizens should now mount a campaign asking the congress party and the budding would be PM to pay the income tax demand wiithout delay and set a precedent!!!

  6. When we come to POWER , we will fullfill RESPECTABLE SHRI SUBRAMANIAN SWAMY’s agenda * ABOLISHMENT OF INCOME TAX * REPLACING IT BY ^NATION BUILDING FUND^ payable by each & CITIZEN @ of maximum 9% on GROSS INCOME.
    for details contsct-
    SNS APPA
    IMG&A
    LAW STUDENT
    SENIOR SQUIRREL POLITICIAN
    JOIN US SUPPORT US BLESS US.
    9341268665/ 9483530608

  7. Leftists have systematically destroyed all the important democratic institutions in India, i) take for instance the political system–politicians are being perceived as the most corrupt and inefficient people(thanks to leftist politicians like Laloo, Sonia, Rahul, Chidambaram and so on). II) they destroyed media–look at brazenly partisan and anti-India behavior of the legacy media. Nobody believes in them anymore, thanks to Rajdeeps, Barkhas and Shekhar Guptas of the media world. The institution called media will take long long time to restore its credibility. iii) Third look at judiciary. This institution is also being undermined by partisan leftists judges’ remember 5 judges ‘revolting against Chief Justice? . The common man sees courts opening their doors at midnight for a terrorist, toning down punishments to crooks like Rahul and Sonia but common Indian being made to wait endlessly for the justice..slowly people have started losing faith in judiciary…now look at the bigger picture–politicians/executive, media and judiciary all undermined..what remains of your democracy? Indian leftists living in our cities, working in media, judiciary, bureaucracy are delivering what naxalites sitting in jungles couldn’t…When Kejriwal said im an anarchist and i want anarchy to prevail, not many people believed it, do we need any further proof that this..

  8. If they were collecting money from individuals, then the Court must ask them to produce the donees details as well. This is another way they are finding to wash black into white.

    If they can riase 7.5 crores why not Rs.10 Crore. Court also erred in not telling them to deposit minimum 25% of the demand made by the IT. It appears currently, they have only Rs.7.5 crore in black.

  9. Because of Sonia’s influence the court asked to pay only 10 crores instead of 49 crores and Sonia and Rahul can arrange the amount t within jiffe.

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