Hindustan Surkhiyan Desk: Citing the December 31, 2018 circulation issued by the Central Board of Direct Taxation (CBDT) which states that fresh issuance of shares is taxable, Congress leaders Ahmed Patel and Vivek Tankha are demanding immediate relief for party President Rahul Gandhi and his mother Sonia Gandhi in the National Herald case. Congress claims that CBDT has vindicated party’s position in the Associated Journals Limited (AJL) case which is pending before the Supreme Court. The Congress also alleged the ruling Bharatiya Janata Party (BJP) for misleading the judiciary and making false allegations. AJL is the publisher of National Herald Newspaper, a mouthpiece of Congress party, and Rahul Gandhi and Sonia Gandhi are amongst prime accused in the case related to alleged financial irregularity.
Speaking to reporters on Friday, Tankha said that the party welcomes the circular by CBDT which clarifies that the provisions of Section 56(2)(viii)(a) of the Income Tax Act 1961 shall not be applicable in cases of receipt of shares by a specified organisation as a result of fresh issuance of shares by a specific company.
Tankha also added that the circular vindicates Congress’ stand that the shares issued by the AJL were not a taxable event. In December last year, a Delhi High Court bench raised concerns over the acquisition of 99 per cent AJL share by a company named Young India. Both Rahul and Sonia hold majority shares in YI.
After the recent CBDT circular, Congress believes that the case will have no legal standing against the party’s leadership. Supreme Court is scheduled to hear the case on January 8 in this matter and party leaders believe that Congress is being unnecessarily being harassed by the current government.
A High Court bench in December dismissed the AJL’s plea challenging the Centre’s order to vacate the Herald House in ITO area in the heart of the national capital, and termed the allegations of mala fide against the BJP government at the Centre as “preposterous”.
HC said AJL will have to vacate the premises at ITO here within two weeks after which proceedings under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 would be initiated.
