Delhi High Court Dismisses Pleas By Gandhis, Aam Aadmi Party Against Transfer Of Income Tax Assessments To Central Circle

The Delhi High Court on Friday dismissed a bunch of pleas moved by Congress leaders Rahul Gandhi, Sonia Gandhi, Priyanka Gandhi Wadra, Aam Aadmi Party and other charitable trusts challenging the decision of Income Tax authorities to transfer their tax assessments to the central circle.

A division bench of Justice Manmohan and Justice Dinesh Kumar Sharma dismissed the petitions and observed that transfer was in accordance with law.

However, the court clarified that it did not examine the matter on merits. 

“Keeping in view the aforesaid conclusions, this Court is of the view that the assessments of the petitioners have been transferred to the Central Circle in accordance with law by way of the impugned orders passed under Section 127 of the Act. Accordingly, the present writ petitions along with pending applications are dismissed, without any order as to costs and the interim orders passed by this Court stand vacated. However, this Court clarifies that it has not examined the controversy between the parties on merits and they shall be at liberty to raise all their contentions and submissions before the concerned statutory authorities,” the court said.

The charitable trusts whose petitions have also been dismissed are Sanjay Gandhi Memorial Trust, Jawahar Bhawan Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust and Young Indian.

The court also said that the transfer of their assessment to the Central Circle was for a coordinated investigation and upheld the orders passed by the IT authorities.

Gandhis and charitable trusts had challenged the order issued by the Principal Commissioner of Income Tax to transfer their cases for the assessment year 2018-19 to the Central Circle.

Title: SANJAY GANDHI MEMORIAL TRUST v. COMMISSIONER OF INCOME TAX (EXEMPTION) & ORS. and other connected matters

Citation: 2023 LiveLaw (Del) 446