Hon’ble ITAT Delhi in case of M/s FIL India Business & Research Services Pvt Ltd Vs ACIT (ITAT Delhi) Appeal Number: ITA No. 412/Del/2023 Date of Order: 10/08/2023 held that the assessee cannot be held responsible attracting the disallowance for the two days delay which was caused due to the technical glitches on the EPFO Portal. Accordingly, sole grievance of assessee is allowed and Assessing Officer directed to delete the disallowance/addition.
The relevant portion of ITAT Order is as follows:
6. On careful consideration of above, first of all, we note that the assessee for making payment for the month of September 2019 generated challan on 09.10.2019 and make payment which was debited to his bank account on 10.10.2019 as per statement given by the bank. However, the same was reversed on 15.10.2019 due to technical glitches on the EPFO portal/EPFO’s SBI Account and the amount was again reversed/credited to the bank account of assessee. Finally the payment was transmitted to the bank account of EPFO on 16.10.2019 and realization was shown on 17.10.2019. As per Assessing Officer the payment was made beyond two days of specified date of 15.10.2019 and he made disallowance and the ld. CIT(A) also uphold the same.
7. In our humble understanding when the payment has been debited in the bank account of assessee and flouted further out of coffer of the assessee on 10.10.2019 then the assessee cannot be held responsible attracting the disallowance. Although the amount was again reversed and credited to the bank account of assessee on 15.10.2017 and finally transferred to the EPFO SBI account on 16.10.2019 then also the assessee cannot be held responsible for the two days delay which was caused due to the technical glitches on the EPFO Portal particularly when the assessee was having sufficient funds on 09.10.2019 and after generating challan first transmission of fund was effected on 10.10.2019 five days before the specified date of 15.10.2019. Accordingly, sole grievance of assessee is allowed and Assessing Officer directed to delete the disallowance/addition.
8. In the result, the appeal of the assessee is allowed.
