The Notice issued by the CBDT to Young India under the National Herald case on December 31, 2018 has cleared it from Tax liability.
In the circular , CBDT has clarified, that the provisions of Section 56(2)(vii)(a) of the Income Tax Act, 1961 shall not be applicable in cases of receipt of shares by a specified company as a result of fresh issuance of shares by the specified company.
Reacting to the circular senior Congress leader and Rajya Sabha M.P. Kapil Sibal said that the CBDT circular clearly exposes the Modi government. He tweeted:
Addressing the media at AICC today, Congress said that the CBDT circular vindicates the party’s position that there never was an issue about issuance of such shares as a taxable event as it was being projected by way of harassment. The party also said that the circular has exposed the government intention to mislead the judiciary and produce fake cases against their political rivals.
The income tax probe against the Congress chiefs has emerged from the criminal complaint filed by BJP leader Subramanian Swamy before a trail court against Rahul, Sonia Gandhi and George in the National Herald case. All the three are out on bail from the court.