Income Tax Returns or Charitable trust
Income Tax Returns or Charitable trust
CIC/Legal/2010/112
CIC Order No : CIC/LS/A/2010/000095
Operative Section : Section 8 (1) (j) of the RTI Act.
Brief of CIC Order :
Commission partly allowed the appeal of the appellant while observing, It may also be noted that a Full Bench of the Commission in decision dated 15.6.2009 in File No. CIC/AT/A/2008/00628 (Milap Choraria –Vs- CBDT) had held that ITRs are ‗personal‘ information in terms of clause (j) of section 8(1) of RTI Act and, therefore, exempted from disclosure.
We now proceed to examine the request of the appellant in the above mentioned legal framework. His request is two fold :-
(i) copies of the assessment orders passed by the competent authority in regard to the Trust; and
(ii) copies of the audited Balance Sheets
As far as point (i) above is concerned, as mentioned above, the Full Bench of the Commission has decided against disclosure of the ITRs and its decision is binding on this Bench. The assessment orders also belong to the same genre. Hence, this information cannot be supplied to the appellant.
However, as regards point (ii) above, the position is slightly different. The appellant is requesting for the balanced sheets and their attachments etc. from 1980 onwards. As noted above, we are dealing with a Mandir Trust to which subscriptions are made by the people in general. The subscribers and, for that matter, even other people, are entitled to know as to whether the subscriptions made by them are being put to proper use in terms of the declared objectives of the Trust. Besides, the people in general are also entitled to know whether the funds generated by the said Trust are being managed in a transparent and efficient manner. Viewed thus, it appears to us that there is no harm if the copies of the audited balance sheets of the Trust are disclosed to the appellant.
However, there is a catch here. The appellant has requested for this information for last 30 years. In our view, it will be asking for too much to direct the Income Tax Department to cull out this vintage information (which, really, may not be of much value to the appellant) and to divert its resources without commensurate gains. In our view, it would suffice if the CPIO provides copies of the audited balance sheet for last 05 years, if available in his records, to the appellant on payment of requisite fee.
Special Civil Application No : 7538/2010, Gujarat High Court.
Issue :
Whether the Commission was right in not disclosing the IT returns of the trust to the petitioner.
Brief of Court Order :
Court quashed the order of the Commission and directed the respondent CPIO and FAA to supply the audited balance sheets of the trust for the last five years to the petitioner. Court observed,
―Accounts of respondent no. 4, being a religious charitable trust, is statutorily audited, whose administration is subject to certain controls by the charity commissioner under the Bombay Public Trust Act. Its action of filing income tax returns with the income tax Department cannot be, in the context of the RTI Act, viewed as a fiduciary relationship. No contrary interpretation can be given to defeat the object of the Act, rendering lack of transparency in functioning of public and religious charitable trusts which carry considerable importance in their functioning, which touch greater portion of the population through different activities and would also make them immune from publishing their accounts, expenditure, funds, etc‖.
―9.0 In the result, order dated 26.04.2010 passed by the Central Information Commission is quashed. Respondent Nos 1 to 3 are directed to supply the audited balance sheets of respondent no 4 for the last five years. This shall be done within a period
Review Application Order :
In review application, Court substituted the order by the following,
―9.0 In the result, order dated 26.04.2010 passed by the Central Information Commission is quashed. Respondent Nos 1 to 3 are directed to supply the audited balance sheets of respondent no 4 for the last five years. Similarly, the said authorities shall also supply income tax returns filed by the respondent no 4 –trust with the income tax authorities for the last five years and the assessment orders, if any, passed on such returns. This shall be done within a period of 8 weeks from the date of receipt of copy of this order‖.
Status : Disposed of on 26.08.2011.