SC allows tax reassessment of Rahul and Sonia Gandhi

The Supreme Court on Tuesday allowed the Income Tax authorities to go ahead with a reassessment of tax paid by Congress leaders Rahul Gandhi and Sonia Gandhi for 2011-12.

A three-judge bench presided over by Justice A K Sikri asked the tax authorities to re-assess the tax but told them not to enforce the final order.

The court passed its brief order, even though Solicitor General Tushar Mehta contended that the petitions filed by the top Congress leaders including former Union Minister Oscar Fernandes, can be dismissed after conducting the hearing for 10 minutes.

He also urged the court not to pass any order. The court, which noted that the matter could not be heard on merits, would now be taken up on January 8.

Congress leaders Rahul Gandhi, Sonia Gandhi and Oscar Fernandes were represented by senior advocates P Chidambaram and Kapil Sibal, among others.

The income of the top Congress leaders for 2011-12 was sought to be reassessed by the tax department as they "failed" to disclose acquisition of shares in Associated Journal Ltd which runs National Herald.

They challenged the Delhi High Court's order of September 10 that refused to give any relief to the leaders.

In his submission earlier, Chidambaram had said the company, Young India with Rahul, Sonia being shareholders, acquired some of the shares in AJL along with debt of over Rs 90 crore, which did not mean that it has given rise to their income. He further said the YI was a Section 25 company which does not make a profit.

The acquisition of shares was not a taxing event, he said. The matter has arisen after a private complaint was filed by BJP leader Subramanian Swamy before a trial court in which the three leaders are out on bail.