The Delhi High Court has ordered the company Young Indian to first deposit Rs 10 crore before the challenging the Income Tax recovery notice of Rs 249.15 crore in connection with the National Herald case.
The court directed the company to deposit half the amount with the IT department before March 31 and the remaining of Rs 5 crore by April 15. The court said that subject to the amount being deposited, the IT shall not enforce the demand of Rs 249.15 crore.
While listing the matter for further hearing on April 24, the court sought the IT department's response on the plea that challenged the demand. Appearing for Young India, senior counsel Arvind Datar said that it would be difficult to raise Rs 10 crore. He said that the amount was being collected from contributions by individuals and also sought that the amount is fixed at Rs 7.5 crore. Further, he said that the company be allowed to deposit the money in court as it was extremely difficult to get a refund from the IT department.
Ashish Jain appearing for the IT department opposed Datar and said that the company had to actually deposit 20 per cent of the demand which comes up to Rs 49 crore.
On December 27, 2017, an assessment order by the IT department found that Young Indian had hushed up the taxable income of more than Rs 414 crore. On January 20, BJP leader and main petitioner Subramanian Swamy produced the copy of this Income Tax Order in the trial court.