Delhi HC sets aside order directing disclosure of PM CARES Fund tax exemption

Delhi HC sets aside order directing disclosure of PM CARES Fund tax exemption

The Delhi High Court on Monday set aside an order of the Central Information Commission (CIC) directing the Income Tax Department to disclose certain information to an RTI applicant regarding tax exemption granted to PM CARES Fund.

The order came on a petition moved by the Central Public Information Officer (CPIO)/Deputy Commissioner of Income Tax HQ Exemption challenging CIC’s April 2022 order directing the CPIO to provide the copies of all documents submitted in the exemption application and copies of the file notings granting the approval related to PM CARES Fund under the RTI application filed by one Girish Mittal.

This information was denied to Mittal by the CPIO and the Appellate Authority on the ground that the information sought is exempted from disclosure under Section 8(1)(j) of the Right to Information Act.

A single judge bench of Justice Subramonium Prasad said, “The CIC does not have the jurisdiction to direct furnishing of information, provided for in Section 138 of the IT Act.”

The HC held that even if the CIC had the jurisdiction, the “failure to give PM CARES, notice of hearing”, would in itself have vitiated the CIC’s order.

Perusing through the provisions of the RTI Act and the Income Tax Act, Justice Prasad observed that the IT Act is a “special” Act governing all provisions and laws relating to income tax and super-tax in the country; while on the other hand, RTI Act is a “general Act which deals with the providing of information to citizens to enable them to realise their Right to Information”. The HC said in the present case, IT Act will prevail over the RTI Act.

“…Section 138 (1)(b) and Section 138 (2) of the IT Act lay down a specific procedure relating to disclosure of information to a third party under the IT Act would override Section 22 of the RTI Act. The information sought for by the Respondent (Mittal) is clearly covered by Section 138(1)(b) of the IT Act. The satisfaction of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is, therefore, necessary before such information can be divulged. That satisfaction cannot be abrogated to any other authority under a general Act for divulging the information sought for,” the HC observed.

Justice Prasad further noted that the information sought by Mittal has been sought from the CPIO of Income Tax Department and “not from the PM CARES Fund”.

“Since the information sought for by the respondent relates to a third party, PM CARES Fund ought to have been heard. Section 11 of the RTI Act prescribes that any information related to a third party can only be divulged after giving notice to the said third party. In view of the above, the CIC ought to have followed the procedure specified under Section 11 of the RTI Act before ordering for grant of information,” the HC held.

The High Court, therefore, allowed the plea filed by the CPIO, IT Department, and set aside the CIC order.

The CPIO had denied Mittal information under Section 8(1)(j) of the RTI Act, which provides for exemptions from disclosure of personal information which has no relationship to any public activity/interest, or which would cause unwarranted invasion of the privacy of the individual unless the CPIO or the SPIO or the appellate authority, as the case may be, is satisfied that the larger public interest justifies the disclosure of such information.

Meanwhile, Mittal had argued that there is an “overwhelming public interest” in directing the authority to supply the information sought for as PM CARES Fund has been created to “serve the public”.

He argued that the PM CARES Fund is a charitable fund established to provide relief to the public during the Covid-19 pandemic or any similar emergencies.

He had contended that the Income Tax Department had on March 27, 2020, approved the applications given by the PM CARES Fund for grant of exemption on Income Tax, adding that he wanted to know the “exact procedure followed by the Income Tax Department in granting such a swift approval and to see whether any rules or procedure were by-passed by the Income Tax Department in granting such approvals”.

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