Shri. G.P. Singh vs The Institute Of Chartered … on 1 February, 2010

                 Central Information Commission
                             2nd Floor, August Kranti Bhawan,
                         Bhikaji Cama Place, New Delhi - 110 066
                                 Website: www.cic.gov.in

                                                            Decision No.5095/IC(A)/2010
                                                           F. Nos.CIC/MA/A/2009/000885
                                                                  CIC/MA/A/2009/000893
                                                            Dated, the1st February, 2010

Name of the Appellant:                   Shri. G.P. Singh

Name of the Public Authority:            The Institute of Chartered Accountants of India
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Facts

:

1. Both the parties were heard on 29/1/2010.

2. The appellant has asked for the following information:

(i) “Whether the Accounting Standards Board of Institute of Chartered
Accountants of India vide letter dated 2nd June, 2009 in the matter
of M/s Power Finance Corporation Ltd. has clarified that Deferred
Tax Liability is not required to be created for the Special Reserve
created under Section 36(i)(viii) of the Income Tax Act, 1961;

(ii) If yes, a copy of the reference made by PFC and clarification
provided by the Accounting Standards Board of the Institute of
Chartered Accountants of India may please be provided to the
undersigned;

(iii) Whether a company can reverse the Deferred tax Liability already
created in the past on Special Reserve created under Section 36

(i)(viii) of the Income Tax Act, 1961″

3. In his response, the CPIO stated as under:

(i) “It is informed that the relevant information which is of interest to
the public is that the opinions of the Expert Advisory Committee on
clarification on Accounting Standards and other guidance is the
primary mandate of this Committee and accordingly opinions of the
Expert Advisory Committee are superior within the given facts of

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“If you don’t ask, you don’t get.” – Mahatma Gandhi

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each case on which the opinion was expressed. The matter under
reference should therefore be seen from the said perspective.

(ii) As regards, your other query about reversal deferred tax liability, it
is informed that the question raised by you is in the nature of
seeking answer to your specific query than seeking information
which does not fall under the term ‘information’ as defined in
Section 2(f) of the Right to Information Act, 2005. Hence your
request cannot be acceded to.”

4. The Appellate Authority of the respondent has upheld the decision of the
CPIO.

5. Being dissatisfied with the response, the appellant pleaded, during the
hearing, that the information asked for relate to accounting procedures of the
public enterprises. And, therefore, the information asked for mainly, the
recommendations of the Expert Advisory Committee, should be put in public
domain so as to contain corrupt practices in manipulation of company’s accounts.
In the course of hearing, the details of information asked for and its implications
for disclosure were discussed. The CPIO pleaded that an opportunity be given to
him to review his decision.

Decision:

6. The CPIO’s plea is accepted. He should consider disclosure of the
information asked for within one month from the date of issue of this decision, as
per the provisions of the Act. If the information relating to the opinions of he
Expert Advisory Committee in the matter of Deferred Tax Liability is to be
refused, the grounds for doing so should be clearly indicated for review, if
necessary, by the Commission. A suitable response should be given to the
appellant, who would be free to approach the Commission again, in case he is
not satisfied with the CPIO’s response. The appeal is, therefore, remanded back
to the CPIO for passing a suitable order for disclosure of the desired information.

7. With these remarks, the appeal is disposed of.

Sd/-

(Prof. M.M. Ansari)
Central Information Commissioner ii

Authenticated true copy:

(M.C. Sharma)
Deputy Registrar
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“All men by nature desire to know.” – Aristotle

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Name & address of Parties:

1. Sh. G.P. Singh, 25/104, East End Apartment, Mayur Vihar, Phase-I
Extension, Delhi – 110 096.

2. Sh. V. Sagar, CPIO, ICAI, ICAI Bhawan, Post Bag No.7100, Indraprastha
Marg, New Delhi – 110 002.

3. Sh. N.P. Singh, Appellate Authority, ICAI, ICAI Bhawan, Post Bag
No.7100, Indraprastha Marg, New Delhi – 110 002.

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