Delhi HC directs Young Indian to deposit 10 Crores (Read Order)

The Delhi High Court has directed Young Indian Private Limited (which has Congress President Rahul Gandhi and former party supremo Sonia Gandhi as major stakeholders) to deposit Rs. 10 crore with the Income Tax Department within four weeks, in lieu of the tax demand to the tune of Rs. 249 crore..Young Indian had challenged the Income Tax proceedings stating that they were prima facie untenable. The company had questioned the method of valuation by the Assessing Officer..Appearing for Young Indian, Senior Advocate Arvind Datar submitted that the petitioner has no assets or readily available resources to pay any amount, and can with difficulty raise only Rs. 5 crore from willing individuals..The Revenue Department contended that the valuation method adopted by the Assessing Officer was justified. It was further submitted that in any event, the assessee’s appeal is being heard by the Commissioner of Income Tax (A) and that any interim order staying the demand should ensure that substantial amounts are deposited..The Division Bench of Justices S Ravindra Bhat and AK Chawla, while directing the deposit of Rs. 10 crore, also directed that 50% of the amount should be deposited on or before March 31, and the balance before April 15..In November 2012, Subramanian Swamy filed a private complaint alleging that both Sonia Gandhi and Rahul Gandhi were guilty of committing fraud and land grabbing by acquiring a publicly limited company called Associated Journals Limited (publisher of National Herald and other newspapers) through their owned private company, Young Indian..Swamy also alleged that the Congress Party lent more than Rs. 90 crore to Associated Journals Limited for commercial purposes at zero interest, which is prohibited as per Section 29A to C of the Representation of People Act, 1951 and Section 13A of Income Tax Act, 1961..Last year, Young Indian had approached the Delhi High Court seeking a stay on the Income Tax investigation and quashing of notices sent by the tax authorities. However, the Court refused to entertain the same, paving the way for the Income Tax Department to investigate the transactions of the company..Read Order: