Background of the Dispute

Respondent No.1, the legally wedded wife of the assessee, filed an RTI application dated 07.08.2017 seeking copies of her husband’s income tax returns, details of taxes paid, and banking information for Assessment Years 2012–2017.

The Income Tax Department rejected the request under Section 8(1)(e) of the RTI Act, stating that the information was held in a fiduciary capacity and constituted confidential third-party information. Notice under Section 11 of the RTI Act was issued to the husband, but no response was received. The First Appellate Authority upheld the rejection.

However, the Central Information Commission, in second appeal, directed the Department to furnish the requested information.

Contentions of the Petitioner (Income Tax Department)

The petitioner argued that income tax returns are personal financial documents and fall within the exemptions under Sections 8(1)(e) and 8(1)(j) of the RTI Act. It was submitted that such returns are submitted under statutory compulsion and are held in a fiduciary relationship between the assessee and the Department.

Reliance was placed on Supreme Court judgments such as Girish Ramchandra Deshpande, CBSE v. Aditya Bandopadhyay, and CPIO v. Subhash Chandra Agarwal, which recognize that personal information, including income tax returns, is protected unless larger public interest justifies disclosure.

The petitioner also invoked Section 138 of the Income-tax Act, contending that it is a special statutory provision governing disclosure of tax information and would prevail over the general provisions of the RTI Act.

Contentions of the Respondent (Wife)

Respondent No.1 contended that she sought the income tax returns to establish her husband’s true income in maintenance proceedings under the Domestic Violence Act. Courts had declined to enhance maintenance due to lack of documentary proof of income.

She argued that denial of such information would effectively defeat her legal right to claim appropriate maintenance. The request was not for public curiosity but to secure justice in pending matrimonial proceedings.

Legal Issues Considered

The High Court examined the interplay between the right to information and the right to privacy. Key issues included:

• Whether income tax returns constitute “personal information” under Section 8(1)(j).

• Whether the Income Tax Department holds such information in a fiduciary capacity under Section 8(1)(e).

• Whether a spouse can be treated as a “third party” under the RTI Act.

• Whether private matrimonial litigation qualifies as “larger public interest.”

The Court also analyzed whether Section 138 of the Income-tax Act, being a special law, overrides the general disclosure framework under the RTI Act.

Conclusion

The case centered on balancing transparency and accountability under the RTI Act with the constitutional right to privacy and statutory confidentiality of tax records. The High Court closely examined judicial precedents and statutory provisions to determine whether the CIC’s direction to disclose income tax returns was legally sustainable