Context:
The Delhi high court set aside an order of the Central Information Commission (CIC) directing the income-tax department to disclose information related to the grant of tax exemption status to the PM CARES Fund.
- Asking for Details: An activist had sought details regarding the tax exemption granted to the PM Cares Fund in May 2020, which was denied by the CPIO/Deputy Commissioner of Income Tax (Headquarter) (Exemption) and appellate authority.
- Reason for Denial: The information sought is exempted from disclosure under Section 8(1)(j) of the Right to Information Act.
- The information sought was not related to any public activity or interest and would cause an unwarranted invasion of the privacy of an individual.
Judgment of the Delhi High Court
- Income Tax Act vis-i-vis RTI Act: The court held that the Income Tax Act prevails over the RTI Act, adding that information relating to an assessee could only be supplied subject to special circumstances.
- Beyond Jurisdiction: The Court said that CIC does not have jurisdiction to directly furnish information provided for in Section 138 of the Income Tax Act and Section 138 (2) of the Income Tax Act prevails over Section 22 of the Right to Information Act (RTI Act).
- Even if CIC had jurisdiction, the failure to give PM CARES notice of hearing would have invalidated the order.
- Right to Freedom of Speech & Expression: It was passed by the Parliament in 2005 to enable the citizens to exercise their freedom of speech and expression under Article 19(1)(a) of the Indian Constitution.
- Mandate: It provides the right to information for citizens to secure access to information under the control of public authorities in order to promote transparency and accountability in the working of every public authority.
- Provision: Under the provisions of the Act, a citizen may request information from a “public authority” (a body of government) which is required to reply within thirty days.
- Section 8(1)(j): It allows officials to refuse access to information, if it intrudes on the privacy of an individual, but permits disclosure of information if there is an overriding public interest.
- Section 11: It prescribes that any information related to a third party can only be divulged after giving notice to the said third party.
- Section 22: It explicitly states that it overrides all other inconsistent legislation.
- The duties of officials to open up under the Central Act override the duties of secrecy in other laws, such as the Official Secrets Act.
- Section 138 (1)(b) and Section 138 (2) of the IT Act: It lays down a specific procedure relating to the disclosure of information relating to a third party under the IT Act that would override Section 22 of the RTI Act.
- The information sought for by the Respondent herein 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 over asking information is, therefore, necessary.
- That satisfaction cannot be abrogated to any other authority under a general Act for divulging the information sought for.
About PM CARES Fund
Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund or PM CARES Fund is a public charitable trust. It is a dedicated fund with the primary objective of dealing with any kind of emergency or distress situation, posed by the COVID-19 pandemic and providing relief to the affected.
- Formation: On 28 March 2020, following the COVID-19 pandemic in India.
- It has been registered as a Public Charitable Trust.
- Composition: The Prime Minister is the ex-officio Chairman, the Minister of Defence, Minister of Home Affairs and the Minister of Finance, Government of India are ex-officio Trustees of the Fund.Purpose: For combating and containment and relief efforts against the covid outbreak and similar pandemic like situations in the future.
- Objectives:
- Relied & Assistance: To provide assistance and relief to all the affected persons in the event of any emergency of any kind that may be either natural or man-made.
- Enhancement of Services: Creation as well as upgradation of any pharmaceutical facilities, any necessary infrastructure, healthcare or any other kind of support and funding for research.
- Voluntary Contribution: The fund consists entirely of voluntary contributions from individuals/organizations and does not get any budgetary support.
- Availability of Tax Exemptions:
- IT Act, 1961: Donations to PM CARES Fund would qualify for 80G benefits for 100% exemption under the Income Tax Act, 1961.
- CSR: Donations to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.
- FCRA: It receives exemptions from the Foreign Contribution (Regulation) Amendment Act, 2020, which enables the PM CARES Fund to accept donations and contributions from individuals and organizations based in foreign countries.
Prime Minister’s National Relief Fund (PMNRF)
- It was established in January 1948 to assist displaced persons from Pakistan in pursuance of an appeal by the then Prime Minister, Pt. Jawaharlal Nehru.
- The resources of the PMNRF are now utilised to Provide immediate relief to families of those killed in natural calamities like floods, cyclones, earthquakes, etc. and to the victims of the major accidents and riots.
- PMNRF accepts only voluntary donations by individuals and institutions and does not get any budgetary support.
- The fund is recognized as a Trust under the Income Tax Act.
- The Prime Minister is the Chairman of PMNRF and is assisted by Officers/ Staff on an honorary basis.
- PMNRF is exempt under Income Tax Act, 1961 under Sections 10 and 139 for return purposes.
- Contributions towards PMNRF are 100% deductions from taxable income under section 80(G) of the Income Tax Act, 1961.
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News Source: Economic Times
January 24, 2024
