Facts of the Case

The respondent filed an RTI application seeking information regarding PM CARES Fund, including copies of documents submitted for obtaining income-tax exemption under Section 80G of the Income Tax Act, 1961, and file notings of the Income Tax Department granting such approval.

The Central Public Information Officer (CPIO) of the Income Tax Department rejected the request stating that the information was exempt from disclosure under Section 8(1)(j) of the Right to Information Act, 2005, as it related to third-party information.

The First Appellate Authority upheld the rejection, after which the respondent approached the Central Information Commission (CIC).

The CIC partially allowed the appeal and directed the Income Tax Department to disclose certain documents related to the grant of exemption to PM CARES Fund.

Aggrieved by the CIC order dated 27.04.2022, the Income Tax Department filed a writ petition before the Delhi High Court challenging the direction to disclose the information. 

Issues Involved

  1. Whether information relating to an assessee obtained by the Income Tax Department can be disclosed under the Right to Information Act, 2005.
  2. Whether Section 138 of the Income Tax Act, 1961 provides the exclusive mechanism for disclosure of such information.
  3. Whether the CIC could direct disclosure of information concerning PM CARES Fund without hearing the concerned entity.
  4. Whether such information is exempt from disclosure under Section 8(1)(j) of the RTI Act, 2005. 

Petitioner’s Arguments (Income Tax Department)

  • The petitioner argued that information relating to an assessee is protected under Section 138 of the Income Tax Act, 1961 and can be disclosed only through the procedure prescribed in that provision.
  • It was contended that RTI Act cannot be used to bypass the specific statutory mechanism under the Income Tax Act.
  • The information sought constituted personal information relating to a third party, thereby attracting exemption under Section 8(1)(j) of the RTI Act.
  • The CIC passed the disclosure order without determining whether any larger public interest justified such disclosure.
  • Further, the PM CARES Fund was not heard before directing disclosure, violating principles of natural justice. 

Respondent’s Arguments

  • The respondent contended that the RTI Act promotes transparency and accountability in public authorities.
  • It was argued that the information relating to PM CARES Fund involved public interest, as the fund received donations from the public.
  • According to the respondent, the CIC had the authority under the RTI Act to direct disclosure of the requested information. 

Court Findings / Judgment

  • Section 138 of the Income Tax Act provides a specific statutory procedure for disclosure of information relating to an assessee.
  • Where a special law provides a mechanism for disclosure of confidential information, it prevails over a general law such as the RTI Act.
  • The Court observed that disclosure of such information requires satisfaction of the competent authority under Section 138 of the Income Tax Act.
  • Consequently, the CIC could not direct disclosure under the RTI Act bypassing the statutory scheme of the Income Tax Act.

 Court Order

  • The Delhi High Court allowed the writ petition filed by the Income Tax Department.
  • The order of the Central Information Commission dated 27.04.2022 directing disclosure of information was set aside.
  • The Court held that information relating to an assessee cannot be disclosed under the RTI Act when a specific procedure exists under the Income Tax Act. 

Important Clarification by the Court

  • Section 138 of the Income Tax Act is a special statutory provision governing disclosure of information relating to assessees.
  • When a specific law regulates disclosure of confidential tax information, it overrides general disclosure requests under the RTI Act.
  • Disclosure of such information requires satisfaction of the competent income-tax authority regarding public interest.

Sections Involved

Income Tax Act, 1961

  • Section 138 – Disclosure of information relating to assessees

Right to Information Act, 2005

  • Section 8(1)(j) – Exemption from disclosure of personal information
  • Section 22 – Overriding effect of RTI Act   

Link to download the order - https://delhihighcourt.nic.in/app/showFileJudgment/SMP22012024CW101932022_180156.pdf

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