On 1st March,The Delhi High Court has upheld the CBDT’s right to withhold tax information of Shri Ram Janmabhoomi Teerth Kshetra Trust under the RTI Act, citing Section 138(1)(b). This decision follows a similar judgment on PM Cares Fund exemptions. An appeal is scheduled for July 10.
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DELHI: On Today(1st March),the Delhi High Court recently overturned a Central Information Commission (CIC) directive that mandated the Central Board of Direct Taxes (CBDT) to provide information under the Right to Information Act (RTI Act) regarding tax exemptions and deductions sought by the Shri Ram Janmabhoomi Teerth Kshetra Trust. This trust, created by the Central government, oversees the construction and management of the Ram Temple in Ayodhya, following the landmark Supreme Court judgment in 2019.
The CIC’s November 30, 2022, directive required the CBDT to share the complete application filed by the trust to avail exemptions and deductions under Section 80G(2)(b) of the Income Tax Act for its donations. The RTI application, initiated by Kailash Chandra Moondra, aimed at ensuring transparency in the trust’s financial transactions.
However, on February 28, Justice Subramonium Prasad of the Delhi High Court ruled in favor of the CBDT, setting aside the CIC order and emphasizing the right of the RTI applicant to approach the appropriate authority under the Income Tax Act for the information sought.
The government’s stance was grounded in Section 138(1)(b) of the Income Tax Act, 1961, asserting that details concerning an assessed cannot be disclosed under the RTI Act. Justice Prasad referenced a prior judgment, specifically the case of CPIO/Dy Commissioner of Income Tax HQ Exemption, New Delhi vs. Girish Mittal, where a similar CIC order involving tax exemptions for the PM Cares Fund was set aside.
“In view of the above, the writ petition is allowed. The impugned order dated November 30, 2022, passed by the CIC is set aside,”
-declared Justice Prasad in his verdict, ensuring that pending applications related to the case were also disposed of. Importantly, the Court reiterated the option for the respondent to seek information through the appropriate channels under the Income Tax Act.
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“It is always open for the Respondent to approach the appropriate authority under the Income Tax Act to seek information as sought for in the RTI application,”
– emphasized Justice Prasad.
It’s worth noting that an appeal has been filed against the Girish Mittal judgment, scheduled for a hearing on July 10. This legal development follows the stay granted by the High Court in January 2023 regarding the CBDT order concerning the Ram Mandir trust.
Representing the CBDT in this case were advocates Zoheb Hossain, Vivek Gurnani, Sanjeev Menon, Abhipriya, and Vivek Gaurav. On the other hand, there was no representation for the respondent, Kailash Chandra Moondra.
CASE TITLE: [Central Public Information Officer v Kailash Chandra Moondra]
[READ THE ORDER]