Income Tax Dept’s findings in the National Herald case and how they implicate the Gandhis

Subramanian Swamy’s “nuclear bomb‘” in the National Herald case is finally out. Swamy today produced in court was an Income Tax assessment order against the Gandhi family owned company Young Indian. The 105 page order dated 27th December says Congress claim of Rs. 90 Crore loan to AJL was “bogus”. It orders Young Indian to pay tax for concealed income of Rs. 414 crore.

The order which was passed on 27.12.2017, has a section which summarizes the “findings of fact” as per the Income Tax officer, arising via the assessment. This section deeply implicates the Gandhi’s as the findings are damaging. The Income Tax Department makes the following claims:

1. Associated Journals Limited (AJL), owner of the National Herald newspaper which was established by Jawaharlal Nehru, decided to close down the business of publishing the newspaper in 2008, with the “oblique purpose” of making commercial use of the properties owned by AJL. The order also notes that these properties were obtained by AJL from Central and State Governments at “ridiculously low prices”.

- Advertisement - - Article resumes -

2. To avoid making payment to AJL and also payment of tax, a “scheme was devised”. The order states that this scheme was devised by Sonia Gandhi, Rahul Gandhi, Motilal Vora and Oscar Fernandes of AICC. Motilal Vora and Oscar Fernandes also represented AJL. The scheme involved “artificial and fraudulent steps” to takeover AJL

3. The scheme was put into force on 23.11.2010 when Young Indian (YI), the company was incorporated and within 3 months i.e. by 26.02.2011 the scheme had been completed. In this time, 99% shares of AJL were allotted to YI. The order also claims that such a transfer violated the norms of the Companies Act as it existed on that day.

4. The scheme, the order says, involved the “purchase of a non-existent loan of Rs 90.21 cr, by AICC to AJL, for a paltry sum of Rs 50 lacs”. The loan, the order claims, was in fact a book entry to transfer ownership of AJL.

5. Next, the order claims that to arrange funds to but the non-existent loan as above, YI “had taken accommodation entries” of Rs 1 crore from a hawala entry operator in Kolkata. The order elaborates the nature of this “accommodation entry”. YI had claimed it had taken a Rs 1 cr loan from a M/s Dotex Merchandise Pvt Ltd. This, the Income Tax Department has deemed as an “accommodation entry” has deemed the commission of Rs 1 lac paid for the above, as “unexplained expenditure”.

6. The order states that although YI had been registered as a charitable company, it had not carried out activities in line with its stated objects, hence the tax exemption of YI was cancelled.

7. The order states that by the above “scheme” YI “benefit had accrued to it in real terms” and as per the Fair Market Value, was valued at Rs 413.40 crores.

8. The order also mentions that 44 opportunities to be heard were given to YI, over a period of 890 days, but YI and its representatives showed “non-cooperative attitude”  in furnishing information and “challenged the authority” of the officer to collect information in the case.

The order thus makes it amply clear that the entire transaction was a sham and as engineered to transfer assets from AJL to YI without the need to pay tax. And Sonia and Rahul Gandhi each reportedly hold a 38% stake in YI. The findings are therefore broadly in sync with what Dr Swamy has been alleging from day one.

The order also makes a new point, that of YI having dealt with a hawala operator. The loan from the company M/s Dotex Merchandise Pvt Ltd. is in the eye of the storm and this thread itself may open up a different can of worms.

Following is the first page and the last 3 pages of the assessment order :

It needs to be seen what stand the court takes in this matter now.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

This is why Neena Gupta wants no one to wish Pritish Nandy even a Happy Birthday

Pritish Nandy 'stole' Masaba's birth certificate and printed in his magazine without Neena Gupta's permission

Congress deletes video where Rahul Gandhi was seen dancing shortly after the Pulwama attack

After Congress' lies against the Prime Minister were exposed, Congress proceeded to delete the tweet where Rahul Gandhi was seen dancing after the Pulwama terror attack.
As Pakistan panics over possible action from India, India takes careful and calculated steps

Pakistan Army begins preparing for war, speculations rife in Kashmir over late night movements

PM Modi had stated earlier that not only India will take all necessary steps to isolate Pakistan internationally, but it has also instructed the security forces to plan and execute retaliatory action.

West Bengal: Ex-IPS officer commits suicide, leaves note saying Mamata Banerjee victimised him for 10 years

Citing his alleged harassment and suffering as the reason, Dutt has written, "I decided to take the drastic step to highlight genuine problems faced by honest officers in West Bengal, and other parts of India."
Image Source: Twitter

Fearing India’s retaliation, Pakistan cancels leaves of its troops, uses flares to light up night sky to see movement of Indian troops

Pakistani administration has asked people to stay in underground bunkers, which could protect them from shelling or any form of attacks which could come from the other side of the border.
Pakistan's government acts as a subordinate of its military and Islamic fundamentalists

It appears Pakistan is scared of India: Masood Azhar’s veiled threat to Imran Khan against any govt action

Masood Azhar said in his weekly address, ''Pakistan's response to Indian Prime Minister Narendra Modi's threats post Pulwama was rather lukewarm and lacklustre. It appears Pakistan is scared of India.''

Pakistanis get scared about attack by India after seeing their own Air Force fighter jets flying over civilian areas

Several people posted on social media that India has dropped bombs over Sialkot in Pakistan

Fact Check: Was PM Narendra Modi doing a photoshoot in Uttarakhand after the Pulwama terror attack?

PM Modi had completed before his forest visit in Corbett National Park before the Pulwama attack
Non-bailable warrant issued against Arnab Goswami by Srinagar Court

‘Our journalism won’t be impeded’: Non-bailable warrant issued against Arnab Goswami by Srinagar court in defamation case filed by PDP MLA

Srinagar District Magistrate Court has issued a non-bailable warrant against Republic TV chief, Arnab Goswami in a defamation case filed by PDP MLA Naeem Akhtar.
Foreign trips and MoUs signed: Read how 5 years of Modi trumps 10 years of Manmohan Singh

Foreign trips and MoUs signed: Read how 5 years of Modi trumps 10 years of Manmohan Singh

In terms of signing international deals and MoU, PM Narendra Modi has delivered 322% more than PM Manmohan Singh at only 18% additional costs

Latest articles

Connect with us

138,766FansLike
111,536FollowersFollow
23,612SubscribersSubscribe

Don't miss these