Relief for Rahul Gandhi, Sonia Gandhi in National Herald case; Congress says CBDT vindicates party's stand

Rahul Gandhi

National Herald Case: 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 accused the ruling Indian Janata Party (BJP) for misleading the judiciary and making false allegations. AJL is the publisher of the National Herald Newspaper, a mouthpiece of Congress party, and Rahul Gandhi and Sonia Gandhi are prime accused in the case related to alleged financial irregularity.

Talking to reporters on Saturday, Tankha said that the party welcomes the circular by CBDT which clarifies that Income Tax Act 1961 of Section 56 (2) (viii) (a) of the provisions of shares by receipt of cases a specific company as a result of fresh issuance of shares.

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 about the acquisition of 99 percent 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 on the case on January 8 in the matter of the Congress on the grounds that Congress is being unnecessarily harassed by the current government.

A High Court bench in December dismissed the AJL's plea challenging the Center's order to vacate the Herald House in ITO area in the heart of the national capital, and termed the allegations of malicious favored against the BJP government at the Center as "disorderly".