National Herald case: Young Indian asked to deposit Rs 10 cr in I-T proceedings
YI, which was incorporated in November 2010 with a capital of Rs 50 lakh, had acquired almost all the shareholding of Associated Journal Ltd (AJL), the owner of the National Herald newspaper.india Updated: Mar 19, 2018 23:06 IST
The Delhi high court on Monday directed Young Indian (YI) Private Limited to deposit ₹10 crore after the firm said it was not in a position to pay the full ₹249.15 crore demanded in the income tax proceedings against it.
A bench of justice S Ravindra Bhat and justice AK Chawla directed the company to deposit the money in two instalments by April 15 — the first before March 31. The company, in which Congress president Rahul Gandhi and Sonia Gandhi are majority stakeholders, owns Associate Journals Limited, which published the National Herald newspaper.
The company has been asked for recovery of tax and interest of ₹249.15 crore raised in pursuance to a December 27 notice issued under section 156 of the Income Tax Act for the assessment year 2011-12. The company had submitted that it was a charitable firm and did not have any income. It had said that income tax authorities had wrongly raised the demand.
Appearing for Young Indian, senior advocate Arvind Datar on Monday asked the court that the amount be fixed at ₹7.5 crore. He submitted that the money was being collected through contributions from individuals, and urged the bench to allow the company to deposit the amount in court rather than the I-T department.
Akash Jain, appearing for the I-T department, argued that the company should deposit ₹49 crore — 20% of the original demand — for its appeal to be heard. Both pleas were rejected. The matter has now been listed for further hearing on April 24.