Re-assessment of Sonia/Rahul Gandhi in connection with Young Indian share allotment to be completed within limitation period but order not to be given effect till next hearing – Supreme Court.
The Division Bench has adjourned the hearing to 08.01.2019 as the as the Bench was not sitting in the afternoon session.
The Apex Court stated that since the limitation period for completing the assessment is expiring, in the meantime, it would be open to the Assessing Officer to complete the assessment and pass the assessment order as well. However, it was directed that till the next date of hearing, the Re-assessment so made would not be given effect by the Department.
The Supreme Court clarified that the aforesaid course of action is adopted without going into the merits of the case in view of the fact that the matter is still at the preliminary stage and limitation is expiring,
Earlier, in last month, the Court had agreed to examine the SLP filed by the Congress leaders including Sonia Gandhi, Rahul Gandhi and Oscar Fernandes, in the re-opening of their income tax cases for not disclosing Young Indian share allotment.
The Hon’ble Supreme Court had agreed to hear the case on 4th December to decide on the legality of the income tax notice issued under section 148.
The Delhi High Court had dismissed their writ petitions against issue of re-assessment notice u/s 148 of the Income tax Act, 1961.
Senior Lawyers and congressmen, P Chidambaram and Kapil Sibal argued that mere transfer/ allotment of shares per se did not and could not have led to a taxing event and therefore it can’t be treated as income.
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