The Karnataka High Court in the case of Income Tax Officer and CPIO v. Gulsanober & Anr. JURISHOUR-132-HC-2026(Kar) has issued the detailed guidelines for courts and the income tax department on the issue whether the income tax returns and financial records of an assessee could be disclosed to his spouse under the Right to Information Act, 2005.
In order to ensure uniformity, clarity and effective implementation of the principles laid down in the said judgment, and to prevent a situation where spouses are left without any effective remedy for obtaining financial information necessary for the just adjudication of maintenance claims, this Court considers it necessary to issue comprehensive guidelines for the courts and the Income Tax Department.
Table of Contents
ITR Info A Personal Info, Exempted From Disclosure Under RTI Act
The Court held that while income tax returns constitute “personal information” under Section 8(1)(j) of the RTI Act and are exempt from disclosure, the appropriate mechanism for a spouse to obtain such financial information is through the competent Court adjudicating maintenance proceedings, and not through the RTI Act.
Courts Adjudicating Maintenance Claims Empowered To Summon Documents, Compel Disclosure From Income Tax Dept.
The court stated that while the right of a wife to seek just and fair maintenance is a valuable legal right, procedural inadequacies must not defeat substantive entitlements. It was further observed that the courts adjudicating maintenance claims have ample powers to summon documents and compel disclosure of financial information from the Income Tax Department, and that the procedural safeguards available in judicial proceedings are far more appropriate than the relatively blunt instrument of an RTI application.
Scope and Applicability Of Guidelines
The guidelines shall apply to all Magistrate Courts, Family Courts, Sessions Courts and Appellate Courts within the State of Karnataka adjudicating proceedings relating to maintenance and or Alimony under any law, including but not limited to Section 144 of the Bharatiya Nagarik Suraksha Sanhita, 2023 ( earlier Section 125 of the Code of Criminal Procedure, 1973), Section 12 of the Protection of Women from Domestic Violence Act, 2005, Section 18 of the Hindu Adoptions and Maintenance Act, 1956, Section 24 and Section 25 of the Hindu Marriage Act, 1955, and corresponding provisions under other personal laws.
All officers and authorities of the Income Tax Department, including but not limited to the Central Processing Centre, Centralised Processing Centre, Assessing Officers, Income Tax Officers, Chief Public Information Officers, Commissioner(s) and Chief Commissioner(s) of Income Tax, within the jurisdiction of this Court.
All proceedings in which one spouse seeks production, discovery, disclosure or inspection
of the income tax returns, assessment records, financial statements, bank details or any other financial records of the other spouse which are in the custody or control of the Income Tax Department.
Relevant Statutory Provisions: Powers of Courts to Summon Documents
Section 94 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (formerly Section 91 of the Code of Criminal Procedure, 1973): empowers any court or officer in charge of a police station to issue a summons to any person to produce a document or other thing in his possession which is considered necessary or desirable for the purposes of any investigation, inquiry, trial or other proceeding under the Code.
Order XVI Rule 6, Code of Civil Procedure, 1908
This provision empowers civil courts to issue summons to any person whose attendance is required either to give evidence or to produce documents.
Section 168, Bharatiya Sakshya Adhiniyam, 2023
Formerly Section 165 of the Indian Evidence Act, 1872, this provision authorizes a Judge to put questions to any witness at any stage and to order the production of any document or thing in any suit, inquiry, or proceeding. The power is wide and discretionary, enabling courts to ensure complete and effective adjudication.
Section 24, Hindu Marriage Act, 1955
The Court is empowered to award maintenance pendente lite and litigation expenses. This power inherently includes authority to direct disclosure of financial particulars necessary to determine appropriate maintenance.
Section 20(1)(d), Protection of Women from Domestic Violence Act, 2005
The Magistrate may grant monetary relief, including maintenance. Fixing just maintenance necessarily requires determination of income and assets of the parties.
Legal Provisions Governing Disclosure of Income Tax Information
Section 138, Income-tax Act, 1961
This provision regulates disclosure of information relating to assessees. Disclosure may be made to specified authorities subject to statutory conditions.
Section 138(1)(b), Income-tax Act
Disclosure may be permitted to authorities performing functions under any other law, if the Central Government notifies such disclosure in public interest.
Section 8(1)(j), Right to Information Act, 2005
Personal information is exempt from disclosure where it has no relationship to public activity or interest or where disclosure would cause unwarranted invasion of privacy, unless larger public interest justifies disclosure.
Duty of Courts to Enquire into Financial Capacity
In all alimony and maintenance cases, the Court must, preferably at the first effective hearing, enquire into the financial capacity of both parties and ascertain whether production of financial records from the Income Tax Department or other authorities is required.
Maintenance cannot be determined solely on unverified oral claims. Where income is disputed, the Court may exercise suo motu powers to summon documentary evidence, including income tax returns and financial records.
Procedure When a Spouse Seeks Income Tax Records
When an Applicant Spouse seeks production of income tax returns or financial records of the Assessee Spouse, notice must be issued to the Assessee Spouse, who may file objections within seven days.
The Court shall hear both parties and pass a reasoned order within fourteen days from filing of the application.
Before issuing a Production Order, the Court must ensure that the information sought is relevant to maintenance determination, that it could not be obtained through reasonable alternative means, that the request is proportionate, that the assessment years sought are relevant, and that adequate safeguards exist to prevent misuse.
If satisfied, the Court shall issue a Production Order specifying the assessment years, documents required, name and PAN of the Assessee Spouse, and timeline for compliance. The Order shall require production in a sealed cover and a copy shall be served on the Assessee Spouse.
Safeguards Imposed by Courts
The Income Tax Department shall produce certified copies in a sealed cover marked confidential. The sealed cover shall be opened only by the Court.
Inspection shall be conducted in the presence of both parties. The Assessee Spouse may identify portions considered irrelevant to maintenance proceedings.
Only relevant portions shall be disclosed to the Applicant Spouse. Information relating to third parties must be redacted.
Before disclosure, the Applicant Spouse and advocate must furnish a written undertaking that the information shall be used solely for maintenance proceedings and not disclosed to any third party.
The Court may permit inspection and note-taking but may restrict retention of copies unless necessary for fair adjudication.
After conclusion of proceedings, records shall be returned to the Department or destroyed, as appropriate.
Suo Motu Powers of Court
Even without a formal application, the Court may summon income tax records where necessary for just determination of maintenance. Reasons must be recorded and the Assessee Spouse must be given an opportunity of hearing.
Financial Disclosure by Both Spouses
In light of the Supreme Court judgment in Rajneesh v. Neha (2021) 2 SCC 324, courts may direct both spouses to file affidavits detailing income, assets, liabilities, expenditure, and standard of living, supported by documentary evidence such as income tax returns and bank statements.
Failure to comply or furnishing misleading information may result in adverse inference and summoning of records directly from the Income Tax Department.
Obligations of the Income Tax Department
Production Orders issued by courts are judicial directions and must be complied with promptly.
The Principal Chief Commissioner or Chief Commissioner of Income Tax shall designate a Nodal Officer not below the rank of Income Tax Officer in each charge to receive and process Production Orders. Details of such officers must be communicated to courts and updated annually.
Upon receiving a Production Order, the Department must acknowledge receipt within three working days, retrieve records from relevant systems, prepare certified copies, place them in a sealed cover clearly marked confidential, dispatch them with proof of delivery, and file a compliance report.
The total maximum time for compliance shall not exceed twenty-one working days.
If records are unavailable, the Department must file an affidavit explaining the reasons. The Court may draw appropriate inferences.
If the Department has objections, they must be raised before the issuing Court within seven working days through a reasoned application signed by an officer not below the rank of Commissioner. The Department cannot unilaterally refuse compliance.
RTI Applications by Spouses
Where a spouse files an RTI application seeking income tax records of the other spouse, the Public Information Officer shall process it in accordance with the RTI Act, inform the applicant that the appropriate mechanism is through the competent Court, provide details of the designated Nodal Officer, and advise filing an application before the Court.
Powers of Appellate Courts
Appellate courts may examine refusal of Production Orders, direct issuance of such Orders, issue them directly where required, and take appropriate action in cases of non-compliance.
Where maintenance awarded by the trial court was inadequate due to absence of financial records and such records are later produced, the appellate court may reassess and enhance maintenance, including retrospectively where warranted.
Safeguards Against Misuse
All records must be transmitted in sealed covers and opened only by the Court.
The Applicant Spouse and advocate must execute a confidentiality undertaking.
Misuse of financial information shall be treated as contempt of court or abuse of process.
Third-party information must be protected and redacted where not relevant.
Any copies provided shall be returned upon conclusion of proceedings.
The records shall form part of the judicial record and remain subject to confidentiality rules.
Consequences of Breach
If the Applicant Spouse breaches safeguards, the Court may initiate contempt proceedings, revoke inspection rights, draw adverse inference, award costs, or pass appropriate orders.
If the Assessee Spouse fails to disclose income, the Court may draw adverse inference, issue Production Orders suo motu, award costs, or impose penalties permissible under law.
If the Income Tax Department fails to comply without justification, the Court may issue peremptory directions, summon the Nodal Officer, initiate contempt proceedings, report the matter to higher authorities, or award costs.
Applicability to Other Financial Authorities
These guidelines apply, with necessary modifications, to financial records sought from authorities such as the GST Department, EPFO, banks and financial institutions, Registrar of Companies or Ministry of Corporate Affairs, and any other public authority holding financial information.
Savings Clause
These guidelines do not curtail the inherent powers of courts, restrict lawful mechanisms for document production, override statutory provisions, or create any independent right to financial disclosure outside judicial process.
Gender Neutrality
These guidelines are gender-neutral and apply equally to applications filed by either spouse.
Communication and Dissemination
A copy of these guidelines shall be circulated to all Magistrate, Family, Sessions, and District Courts in Karnataka and forwarded to the Principal Chief Commissioner of Income Tax, Karnataka and Goa Region, for departmental circulation.
Read More: International Customs Day Celebrated at Vigyan Bhawan: CBIC
