22 January 2024 Administrative Law >> Constitution & Law Procedure   |   RTI – Right to Information >> Miscellaneous   |   Income Tax >> Tax Laws  

A recent Delhi High Court judgment has cast doubt on the ability to use the Right to Information Act (RTI Act) to access details about the tax exemption status of the PM CARES Fund.

Factual Background:

An unnamed individual (hereinafter referred to as the "Respondent") filed an RTI application with the Income Tax Department (IT Department) seeking access to documents pertaining to the PM CARES Fund's application for tax exemption under Section 80G of the Income Tax Act, 1961 (IT Act).

Initial Denial and Appeal to CIC:

The IT Department rejected the Respondent's application, citing Section 138(1)(b) of the IT Act. This provision mandates a specific procedure and authorization from the Income Tax authorities before disclosing information about an assessee (taxpayer). Dissatisfied with this response, the Respondent appealed to the Central Information Commission (CIC). The CIC ruled in favor of the Respondent, directing the IT Department to disclose the requested information under the RTI Act's framework.

High Court's Reasoning and Decision:

The IT Department challenged the CIC's order before the Delhi High Court. The Court, in its judgment, applied the principle of generalia specialibus non derogant. This legal maxim translates to "a general law does not derogate from a special law," implying that a specific statute takes precedence over a general one in the event of a conflict. The Court reasoned as follows:

• The IT Act is a special law governing income tax matters and disclosure of taxpayer information.
• The RTI Act is a general law promoting transparency and access to information.
• Section 138(1)(b) of the IT Act outlines a specific mechanism for disclosing information about assessees, considering potential privacy concerns and potential misuse.

Therefore, the Court concluded that Section 138(1)(b) of the IT Act, being a lex specialis (special law), prevails over the RTI Act's general provisions in this instance. Consequently, the Court ruled that the Respondent cannot access the requested information through the RTI route.

Implications and Next Steps:

This judgment clarifies the limitations of the RTI Act in obtaining information related to taxpayer exemptions granted under the IT Act. Individuals seeking details about the PM CARES Fund's tax-exempt status must adhere to the specific application process outlined in Section 138(1)(b) of the IT Act.

The judgment excerpt may not explicitly mention the final order, but it's highly probable that the Court dismissed the appeal and upheld the IT Department's position. This decision might be appealed to higher courts, potentially leading to further legal interpretation on the interplay between the RTI Act and specific provisions within the IT Act.

  Income Tax Act, 1961