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Notably, vide order dated 1st January 2021, all these cases were transferred to the Deputy Commissioner of Income Tax, Central Circle under Section 127 of the Income Tax Act
Supreme Court today adjourned the hearing of pleas filed by Rahul Gandhi, Sonia Gandhi, Priyanka Gandhi Vadra, Aam Aadmi Party, and others challenging the Income Tax department’s decision of transferring their tax assessments from faceless assessment to its Central Circle to Monday.
A bench of Justices Sanjiv Khanna and SVN Bhatti has ordered so after observing that it need time to read the files.
Court today questioned the delay of 5 months is filing writ petitions challenging the impugned order.
"Delay can be fatal in cases like these...", observed Justice Khanna.
Court further observed that transfer of cases was the department's prerogative and it was not concerned with the politics of the issue.
Earlier this year, a division bench of Justice Manmohan and Justice Dinesh Kumar Sharma of the Delhi High Court had upheld the Income Tax authorities’ decision to transfer the cases while observing that the transfer was in accordance with the law. However, the bench clarified that it did not examine the matters on merits.
In addition to Gandhis and AAP, the court also upheld the decision of transfer assessments of the Sanjay Gandhi Memorial Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust, Young Indian, and Jawahar Bhawan Trust. All of these trusts are associated with the Gandhis.
In the pleas, the Gandhis and others 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.
A case was registered against the Gandhis for assessment of income tax with respect to Sanjay Gandhi Memorial Trust, Jawahar Bhawan Trust, Rajiv Gandhi Foundation, Rajiv Gandhi Charitable Trust & Young Indian – except Jawahar Bhawan Trust (which was assessed by Ward 1(4), Exemption Delhi).
Initially, all these trusts were being assessed by Circle Exemption (2)(1), Delhi.
However, vide order dated 1st January 2021, all these cases were transferred to the Deputy Commissioner of Income Tax, Central Circle under Section 127 of the Income Tax Act.
The Gandhis have alleged that the order of transfer, did not mention any reason or purpose behind the transfer.
Therefore, a plea was filed challenging the order of transfer before the Delhi High Court. High Court stayed the impugned order on 22nd March 2021.
Case Title: AAM AADMI PARTY vs. COMMISSIONER OF INCOME TAX (EXEMPTION) AND ORS.
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