Home Income tax Individual Income Tax No PF Disallowance when delay in deposit of PF was precipitated as a result of technical glitches on EPFO Portal

No PF Disallowance when delay in deposit of PF was precipitated as a result of technical glitches on EPFO Portal

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No PF Disallowance when delay in deposit of PF was precipitated as a result of technical glitches on EPFO Portal

No PF Disallowance when delay in deposit of PF was precipitated as a result of technical glitches on EPFO Portal: ITAT

The Revenue Tax Appellate Tribunal (ITAT Delhi) within the matter of FIL India Enterprise & Analysis Providers Pvt. Ltd. vs. The ACIT has held that the assessee can’t be held chargeable for the 2 days delay which was precipitated as a result of technical glitches on the EPFO Portal notably when the assessee was having ample funds. Accordingly, the Revenue Tax Disallowance on Account of the Delay within the Deposit of Worker Provident Fund Share was deleted.

The ld. counsel of assessee submitted that on the information and circumstances of the case and in regulation, the order handed by the Commissioner of Revenue Tax Appeals [CIT(A)’1 below part 250 of the Revenue tax Act (‘the act) dated 23 December 2022 issued by Nationwide Faceless Enchantment Centre (NFAC’) is dangerous in regulation and void ab initio as the identical has been handed on the premise of incorrect set of fax with out software of thoughts and in a mechanical method. The ld. counsel additional submitted that the CIT(A) failed to understand the truth that the delay in deposit of staff’ contribution to provident fund (PF’) amounting to IN 21 439 579 shouldn’t be attributable to the Appellant and the identical was attributable to technical glitches on the EPFO portal. It has additionally been contended on behalf of the assessee that the CIT(A) failed to understand that the aforesaid addition of IN 22,329,575 couldn’t have been made by the Central Processing Centre below Part 143(1) of the Act as the identical constitutes a debatable problem and doesn’t fall inside the ambit of prima facie adjustment as per Part 143(1) of the Act.

The ld. counsel submitted that for the month of September 2019 the due date fee was 15.10.2019 and the assessee made funds by producing challan on 09.10.2019 and quantity was debited to the checking account of assessee on 10.10.2019 which was reversed on 15.10.2019 crediting the checking account of assessee. He additional submitted that within the second spherical lastly the fee was transmitted to the account of involved authority on 16.10.2019. The ld. counsel submitted that it’s clearly evident that the appellant had duly deposited the above fee earlier than the due date as per the PF Act i.e., the appellant had duly generated the challan on 9 October 2019 and made the fee pertaining to the month of September 2019 to the EPFO SBI account on October 10, 2019 i.e. 5 days earlier than the due date of October 15, 2019. Nevertheless, the fee acquired reversed on 15 October 2019 to the checking account of the appellant attributable to technical glitches on the EPFO portal/EPFO’s SBI Account. Due to this fact no disallowance will be made when the quantity due was accessible within the checking account of assessee on 09.10.2019 and it was transmitted to the involved account on 10.10.2019 then if the fee is reversing and once more transmitted the priority account on 16.10.2019 then the assessee can’t be held as defaulter of fee attracting the motion of the Assessing Officer to make disallowance subsequently the Assessing Officer could kindly directed to delete the disallowance.

The ld. Senior DR supported the orders of the authorities beneath nevertheless, he didn’t controvert the factual place said by the ld. counsel of the assessee.

On cautious consideration of above, initially, we observe that the assessee for making fee for the month of September 2019 generated challan on 09.10.2019 and make fee which was debited to his checking account on 10.10.2019 as per assertion given by the financial institution. Nevertheless, the identical was reversed on 15.10.2019 attributable to technical glitches on the EPFO portal/EPFO’s SBI Account and the quantity was once more reversed/credited to the checking account of assessee. Lastly the fee was transmitted to the checking account of EPFO on 16.10.2019 and realization was proven on 17.10.2019. As per Assessing Officer the fee was made past two days of specified date of 15.10.2019 and he made disallowance and the ld. CIT(A) additionally uphold the identical.

In our humble understanding when the fee has been debited within the checking account of assessee and flouted additional out of coffer of the assessee on 10.10.2019 then the assessee can’t be held accountable attracting the disallowance. Though the quantity was once more reversed and credited to the checking account of assessee on 15.10.2017 and at last transferred to the EPFO SBI account on 16.10.2019 then additionally the assessee can’t be held chargeable for the 2 days delay which was precipitated as a result of technical glitches on the EPFO Portal notably when the assessee was having ample funds on 09.10.2019 and after producing challan first transmission of fund was effected on 10.10.2019 5 days earlier than the desired date of 15.10.2019. Accordingly, sole grievance of assessee is allowed and Assessing Officer directed to delete the disallowance/addition.

Within the outcome, the enchantment of the assessee is allowed.

For Official Judgment Obtain PDF Given Beneath:

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