Supreme Court extends interim protection for Sonia, Rahul Gandhi and Fernandes in IT case

The Supreme Court today adjourned the hearing in the case relating to the Income Tax assessment of Congress leaders Sonia Gandhi, Rahul Gandhi, and Oscar Fernandes till January 29..In the previous hearing, the Court had allowed the Income Tax Department to reopen the assessment of the Gandhis and Fernandes for the year 2011-12, with a rider that the assessment orders cannot be given effect till the next date of hearing. This interim protection stands extended till the next date of hearing..The Bench of Justices AK Sikri, S Abdul Nazeer, and MR Shah today directed Senior Advocate P Chidambaram, appearing for the petitioners, to file a contentious circular issued by the Central Board of Direct Taxation (CBDT) on affidavit. Solicitor General Tushar Mehta sought time to file a counter to the same..While making his submissions, Chidambaram told the Court that the CBDT had issued a circular on December 31, 2018, which differentiated between transferred shares and issued shares. The same circular was later withdrawn on January 4, 2019, “as though it was never issued”. This circular, which stands withdrawn, could have favoured the case made out by the Gandhis and Fernandes..Chidambaram also narrated the timeline of events that transpired during the year for which reopening of assessment is sought while specifying the details pertaining to debts, loans, as well shares held by companies Young India and Associated Journals Ltd. (AJL)..The three-Judge Bench has granted the petitioners one week’s time to place the said CBDT circular on record. Senior Advocates Kapil Sibal and Arvind Datar also appeared for the petitioners..The Court also granted Tushar Mehta one week’s time thereafter to file a counter on behalf of the Centre, and fixed the next date of hearing on January 29..In the meantime, the interim protection against action by the IT department based on the assessment order will continue, the Court order says..Read the order: