PTI, NEW DELHI: The Income Tax department today told the Delhi High Court that Congress leader Rahul Gandhi’s tax assessment for the year 2011-12 was reopened as material facts were concealed.
The department’s contention was made before a bench of Justices S Ravindra Bhat and A K Chawla by Additional Solicitor General (ASG) Tushar Mehta.
The bench, after hearing the arguments for two hours, reserved its order for September 10 on the pleas of Rahul, his mother Sonia Gandhi and Congress leader Oscar Fernandes, all of whom have challenged reopening of their tax assessments for the same year (2011-12).
When the bench was about to pass a written interim direction on this, Mehta said there was no need to pass a written order and assured that no coercive action would be taken in the meantime.
After which senior advocate P Chidambaram, appearing for Sonia Gandhi, said he had faith in the oral statement made by the ASG.
ASG Mehta argued that the Congress leaders had alleged malafide on the part of the tax department but had not made any averments in this regard.
“I (assessing officer) will be guilty of dereliction of duty if I do not send the notice,” he argued.
Chidambaram said the notice issued by the tax department informing the reopening of assessment was “perverse” and sent with “non-application of mind” and urged that it be set aside.
He also said that the Congress leader paid Rs 1.9 lakh for her shares in Young Indian (YI) and now she was told that Rs 154 crore was taxable income. He termed it a “bizarre” argument.
During the hearing, the ASG argued that Rahul’s assessment was reopened as income from other sources had escaped and material facts, including that he was a director of YI since 2010, was concealed by him.
“He (Rahul) failed to full and true disclosure of material facts,” he said.
