Public interest limits tax information disclosure for private criminal defence under the Income Tax Act

Disclosure of information about a third party's tax evasion proceedings is limited to cases involving genuine public interest under the Income Tax Act; it cannot be used to expand evidence for a private criminal defence. The Telangana HC also noted that a rejection under Section 138(1)(b) was not cryptic where the competent officer considered the request on merits and gave reasons. Information already obtained under the RTI Act may be relied on, but a litigant cannot demand additional disclosure under Section 138(1)(b) for use in matrimonial or criminal proceedings.

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Issues: Whether information sought under Section 138(1)(b) of the Income-tax Act, 1961, relating to tax evasion proceedings against a third party, could be directed to be disclosed on the ground of public interest.

Analysis: The request was made to obtain material gathered in tax evasion proceedings initiated against a third party and to use it in pending criminal proceedings. The petitioner had already received certain information under the Right to Information Act, 2005, but sought further disclosure of the proceedings, including notices, statements and final outcome. Such further disclosure was held to be outside the scope of public interest, particularly when the information related to proceedings against another individual. The order refusing disclosure was found to be reasoned and not cryptic.

Conclusion: The request for further disclosure was held to be not maintainable on the ground of public interest, and the challenge to the refusal failed.

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