Assessment order passed on: The Income Tax department informed the Supreme Court that an assessment order (AO) with respect to the tax of top Congress leaders Rahul Gandhi and Sonia Gandhi for 2011-12 in connection with the National Herald case has been passed but not being given effect.
The court allowed the AO, Which was passed on 31st December 2018, raising the tax demand from Congress president Rahul, his mother Sonia and others, to be placed on the record after the I-T department insisted on it but said that it would not form any opinion on the merits of the case on its basis.
A bench of Justices A K Sikri, S Abdul Nazeer and M R Shah also asked Sonia and Rahul to file an affidavit and place on record in four weeks a CBDT circular which was issued on 31st December 2018, to clarify about taxes on valuations but was recalled on 4th January.
The court asked the I-T department to file its reply to the affidavit and the circular to be filed by the Congress leaders within a week thereafter.
The bench said that the interim order passed earlier by the court will continue and posted the matter for further hearing on 29th January.
The tax matter is related to the National Herald case in which the Congress leaders are also facing criminal proceedings.
Senior advocate P Chidambaram, appearing for the Gandhis, said the CBDT had on 31st December issued circular clarifying applicability of section 56(2)(viia) of the I-T Act for the issue of shares by a company.
P Chidambaram also added, “This circular 31st December 2018, clarified the point of receiving of share. However, interestingly four days later, the CBDT withdrew the circular saying the matter is sub-judice.
The I-T department had said the shares Rahul has in YI would lead him to have an income of Rs 154 crore and not about Rs 68 lakh, as was assessed earlier.