Delhi high court dismisses Gandhis’, AAP pleas against I-T assessment transfer

The three Congress leaders opposed the transfer of the tax assessment to the central circle in 2021, arguing that only the rarest of cases go out of faceless assessment.

NEW DELHI: The Delhi high court on Friday dismissed a batch of nine petitions including three by Congress leaders Sonia Gandhi, Rahul Gandhi and Priyanka Gandhi Vadra, and another by the Aam Aadmi Party (AAP) that challenged the orders of the income tax department to transfer their tax assessment from the faceless assessment to the central circle.

Former president Sonia Gandhi, party leader Rahul Gandhi and general secretary Priyanka Gandhi Vadra had petitioned the high court against the income tax department’s order (HT File Photo)

A bench of justices Manmohan and Dinesh Kumar Sharma ruled that there was no fundamental or vested legal right to be assessed under the faceless assessment scheme. “The writ petitions along with pending applications are dismissed without no orders as to cost,” the court said.

The high court was ruling on nine petitions challenging the I-T authorities’ decision to transfer the tax assessments of the three Congress leaders, AAP and five charitable trusts associated with the Gandhis to the central circle. The five charitable trusts are Sanjay Gandhi Memorial Trust, Jawahar Bhawan Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust and Young Indian.

The three Congress leaders opposed the transfer of the tax assessment to the central circle in 2021, arguing that only the rarest of cases go out of faceless assessment. During the proceedings, the Gandhis underlined that even cases that are taken out of faceless assessment are marked to the assessment officer concerned and not the central circle, which only happens in cases of search and seizure and is considered a “black mark”.

A detailed copy of the judgment is awaited. The bench, however, underlined that it did not examine the matter on merits but decided various legal issues on the right of the assessee in such transfer cases.

The faceless assessment scheme, introduced in 2019, eliminates physical contact between the taxpayer and the taxman. It provides for the random selection of tax cases through artificial intelligence and machine learning, with reduced discretion or no human interface with the tax department.

“The parties are free to raise their contentions before the appropriate statutory authority,” the bench said, holding that the assessment was transferred in accordance with the law and for better coordination. It also underlined that the central circle was not confined only to search cases as was contended by the petitioners.

The petitions by the Gandhis opposed the decision of the Principal Commissioner of Income Tax to transfer their tax assessment for the assessment year 2018-19 to the central circle for treating it along with arms dealer Sanjay Bhandari’s group.

The Gandhis said they have nothing to do with the Sanjay Bhandari group’s cases and there has been no instance of search or seizure in their cases. Bhandari, wanted in India for corruption and money laundering charges, has been allegedly linked to Priyanka Gandhi’s husband, Robert Vadra, over a London-based flat. Mr Vadra has denied any business connections with the accused.