The Delhi HC had yet to issue notice of the petitions against its decision
The Supreme Court on Friday deferred the hearing of the petitions filed by Congress leaders Sonia Gandhi, Rahul Gandhi, and Priyanka Gandhi Vadra as well as the Aam Aadmi Party (AAP) challenging the transfer of their Income Tax assessments to the Central Circle, which is mandated to check tax evasion, till December 13. A bench headed by Justice Sanjiv Khanna observed that notice was yet to be issued on their petitions against the Delhi High Court order refusing to grant them relief.
Solicitor General Tushar Mehta said issuance of formal notice in the matter, which includes similar pleas by Sanjay Gandhi Memorial Trust, Rajiv Gandhi Charitable Trust and Rajiv Gandhi Foundation, Jawahar Bhawan Trust, and the Young Indian, was “not necessary”, and as indicated by the court earlier, the Income Tax department will not pass any final assessment order. The bench, also comprising Justice S V N Bhatti, asked the IT department to bring the relevant file on December 13, the next date of the hearing.
On BJP leader Subramanian Swamy’s complaint in the National Herald case, the Income Tax charged Sonia Gandhi and Rahul Gandhi for floating shell firm Young Indian and evaded tax of Rs.414 crore[1]
The Gandhi family members, the trusts linked to them, and AAP have challenged the May 26 common order of the Delhi High Court dismissing their petitions against the Income Tax department’s decision to transfer their IT assessments to the Central Circle, which is authorized to check tax evasion, instead of an ordinary assessment. The Gandhis had challenged the January 2021 order issued by the Principal Commissioner (Income Tax) to transfer their cases for the assessment year 2018-19 to the Central Circle over a matter related to arms dealer Sanjay Bhandari.
Fugitive Sanjay Bhandari, wanted in India on money laundering charges, has been accused of having business links with Priyanka Gandhi Vadra’s husband Robert Vadra, who has denied any business connections with the fugitive arms dealer. The Central Circle, which is authorized to check tax evasion, takes over the evidence gathered by the IT department’s investigation wing during searches.
On May 26, the Delhi High Court said it is of the view that the assessments of the petitioners have been transferred to the Central Circle in accordance with law by way of the impugned orders passed under Section 127 of the (IT) Act. The court clarified it has not examined the “controversy between the parties on merits” and said the Central Circle’s jurisdiction is not confined only to search cases, and no assessee has any fundamental or vested legal right to be assessed by a faceless assessing officer.
The Gandhis had opposed the transfer of their cases to the Central Circle on several grounds including that they have nothing to do with the Sanjay Bhandari group’s cases. The IT department had opposed the petitions filed by the Gandhis and AAP in the high court and said the transfer orders were issued for “better coordination, effective investigation and meaningful assessment” which reflects administrative convenience and exigency.
Reference:
[1] National Herald case: Read 105-page Income Tax Assessment Order against Young Indian exposing Rs.414 crores gain – Jan 22, 2023, PGurus.com
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If one has money and connections to higher specialist lawyers for taking every case to highest court, once the bail is granted the one is free to enjoy the alleged proceeds of crime and die on bail.