Kalpakta Education Foundation Vs CIT Exemptions (ITAT Nagpur)
In the case of Kalpakta Education Foundation vs. CIT (Exemptions), the Income Tax Appellate Tribunal (ITAT) Nagpur addressed the denial of provisional registration under Section 12A of the Income Tax Act. The appellant, a charitable organization registered under Section 8 of the Companies Act, applied for registration under Section 12AB. In response to multiple notices from the Commissioner of Income Tax (Exemptions), the assessee submitted all requested information through the official ITBA portal. However, the CIT(E) rejected the application, stating that the files submitted on 19/12/2023 could not be accessed or opened due to technical issues, as they appeared corrupt or were displaying “0 kb” in size.
The Tribunal noted that although the assessee was not present during the hearing, it proceeded to decide the matter based on the record and arguments presented by the Departmental Representative. It was observed that the assessee had responded on time and uploaded the required documents through the correct procedural channel. The ITAT held that the inability of the CIT(E) to access the submitted files was not a fault of the assessee but rather a technical problem with the ITBA portal. As such, penalizing the assessee for an issue beyond its control was found to be unreasonable and against the principles of natural justice.
