The Supreme Court on Tuesday agreed to examine an appeal by Congress leaders Sonia Gandhi, Rahul Gandhi and Oscar Fernandes, in the income tax re-assessment, in connection with the National Herald controversy.
Senior Supreme Court advocates and former UPA ministers, P Chidambaram and Kapil Sibal, appearing for Sonia and Rahul Gandhi told the court that "mere transfer of shares can't be treated as income."
While the Gandhis' counsels insisted on issuing notice to the Income Tax department, Solicitor General Tushar Mehta told the court that there is no need to issue notice as he is representing the tax department.
After the short hearing, a bench comprising justices AK Sikri and SA Abdul Nazeer said, "Since the respondent (I-T department) has put in an appearance, we are not issuing a formal notice. However, we are fixing the matter for final arguments on December 4." The court will decide whether the income tax notice served to the Gandhis' is valid or not.
The Gandhis' had appealed against the reopening of their tax assessments for 2011-12, relating to Associated Journals Ltd, the publisher of National Herald.
On September 10, the Gandhis had failed to get any relief from the Delhi High Court, which dismissed their challenge on reopening of their tax assessments for 2011-12.
The income tax matter, against the Congress leaders, is linked to the National Herald controversy in which they are also facing a criminal case.
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