LI Network
Published on: January 23, 2024 at 12:55 IST
The Delhi High Court has set aside an order issued by the Central Information Commission (CIC) instructing the Income Tax department to furnish information and document copies submitted by the PM Cares Fund while applying for tax exemption under the Income Tax Act.
Justice Subramonium Prasad ruled that the CIC lacks jurisdiction to direct the provision of information specified in Section 138 of the Income Tax Act.
Justice Prasad emphasized that Section 138(2) of the Income Tax Act takes precedence over Section 22 of the Right to Information Act (RTI Act). The Court held that the CIC’s failure to notify PM Cares Fund before issuing the order, even if it had the jurisdiction, would have invalidated the order.
The CIC had directed the IT Department to provide information based on an RTI application filed by Girish Mittal, a Mumbai-based activist. Mittal sought details on the tax exemption granted to the PM Cares Fund, including documents submitted and file notings granting approval.
The CIC ordered the CPIO to provide information but rejected the request for details on other exemption applications.
The Delhi High Court allowed the plea filed by the IT Department, stating that even if the CIC had jurisdiction, it failed to follow the required procedure under Section 11 of the RTI Act.
The Court emphasized that PM Cares Fund should have been given notice as the information concerned a third party.
The PM Cares Fund received approval under Section 80G of the Income Tax Act, enabling taxpayers to claim deductions for contributions made as donations.
The IT department challenged the CIC order, arguing that the information requested related to a third party, and the CIC could not issue an order without giving the Fund an opportunity to be heard.
The Court’s decision serves as a setback to transparency advocates seeking information on the tax-related aspects of the PM Cares Fund.