Financial Data of Tax Payers must be Protected: CIC directs Investigation against Leak of Details of IT Returns [Read Order]

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The Central Information Commission recently directed the Income Tax Department to investigate into an incident of IT returns of an RTI applicant being released to third parties without his consent.

The Information Commissioner observed that the financial data entrusted to the Department by the tax payers need to be protected since there involves a large public interest.

The appellant, in the instant case raised some serious allegations against the safety of the details of income tax returns. He stated that the details of his return are provided to third parties by the Department without his consent. He urged that his IT returns were downloaded inĀ December, 2012 by the owner of two different USER ID and shared with a third party without his consent. He had now sought information about the details of data security/sharing policies practiced by the income Tax Department, and the grounds on which the financial details filed by an IT assessee could be made available to a third party/public. He had also demanded to know whether such an act attracted penal provisions under Indian Penal Code or the IT Act, 1961.During the course of the hearing, it was revealed that Mr. Satapathy was notified of the transfer of his RTI application 16 different times.Ā He then preferred an appeal against the order of the CPIO.

The CIC noticed that the Supreme Court and various High Courts have often denied disclosure of IT returns through RTI application without the consent of the tax payers. It was said thatā€œThe Commission was baffled while considering the facts and circumstances of the present case in as much as in majority of similar subject matters considered by the Commission on a daily basis, the Respondents invariably claimed various exemptions under Section 8(1) to deny information to information seekers regarding Income Tax Returns of Third Parties. However, in the present instance, the personal and confidential information of the information seeker himself is alleged to have been compromised and no satisfactory response regarding the status of investigation was provided.ā€

Allowing the appeal, the Information Commissioner Bimal Julka observed that the issue raised by the appellant requires a detailed investigation.ā€œKeeping in view the facts of the case and the submissions made by both the parties and considering the gravity and seriousness of the issues raised by the Appellant, there is an emergent requirement to investigate the root cause of the leakages of Confidential Data filed by the Tax Payers and plug the loopholes forthwith. It is essential to protect the Confidential Financial Data filed by millions of Tax Payers from falling into wrong hands in the larger public interestā€.

It thereafter directed that investigation into the incident be completed within a period of 30 days, and the report must be shared with the Appellant and the Commission.

Read the full text of the Order below.

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