In a massive blow to the Gandhis, the Income Tax Tribunal on Friday declared that Young Indian is not a charitable organisation. The tax tribunal rejected the plea filed by former Congress President Rahul Gandhi which claimed that Young Indian is a non-profit organisation.
Republic TV has accessed the order that states that Young Indian, by all means, is a commercial entity. The tribunal has rejected the plea to declare it a charitable organisation and thus, should get a tax exemption. This paved the way for reopening of the Rs 100 crore tax case against Rahul Gandhi.
The tribunal order reads, "No genuine activities have been carried out by the assessee either in furtherance of its objects or otherwise, which can be held to be for charitable purpose because one of the so-called purpose of acquiring Associated Journals Ltd [AJL] was not carried out at all. Otherwise, also, we have already discussed and given our categorical findings that till the grant of the registration and surrender made by the assessee, no worthwhile activities were carried out by AJL. In fact, what it turns out to be is that, the assessee has acquired AJL, a company that owns property worth hundreds of crores from which the AJL had been enjoying only rental income.”
The Income Tax department has found that the All India Congress Committee (AICC) gave loans to Young Indian, which in turn, was doing business through the Associated Journal Limited.