Delhi HC rejects Gandhis, AAP's plea against I-T assessment transfer
What's the story
The Delhi High Court on Friday upheld the Income Tax Department's decision to transfer the tax assessment of Congress leaders Rahul Gandhi, Sonia Gandhi, Priyanka Gandhi Vadra, and the Aam Aadmi Party (AAP) to the Central Circle from a faceless assessment. The Delhi HC also scrapped a bunch of pleas moved by the leaders, the AAP, and other charitable trusts against the decision.
Context
Why does this story matter?
The matter is related to arms dealer Sanjay Bhandari, who is wanted on money laundering charges and is allegedly linked to Robert Vadra, the husband of Priyanka Gandhi. In 2018, the I-T Department reopened Rahul Gandhi's 2011-12 tax assessment in the National Herald misappropriation of assets case. Gandhi moved the court against the I-T Department's decision, which was later upheld by the Supreme Court.
Details
Gandhis claim transfer based on arms dealer Bhandari's case
Apart from the Gandhis and the AAP, the HC also upheld the transfer of assessments of the Sanjay Gandhi Memorial Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, Young Indian, and the Jawahar Bhawan Trust, all non-profits managed by the Gandhis. The Gandhis' petitions claimed the transfer was based on the findings in arms dealer Bhandari's case, but they aren't associated with them.
Information
Union law minister Meghwal calls it 'landmark decision'
A division bench of Justices Manmohan and Dinesh Kumar Sharma passed the order on Friday after reserving its decision in March. Meanwhile, newly-appointed Law Minister Arjun Ram Meghwal tweeted about the case and called it a "landmark decision." Notably, the tax assessment is from 2018-19.
Central Circle
What does the transfer to Central Circle mean
The bench said that the transfer was done in accordance with the law. The Central Circle complements the probe wing of the I-T Department, which will now hand over the purported evidence recovered during raids to the Central Circle, which will complete the tax assessment. If tax evasion is found, penalty orders or prosecution proceedings could be launched.