TaxTMI 
TaxTMI 
2025 (4) TMI 1868
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....(A) it was argued that the delay was on account of technical glitch. The circular issued by the Provident Fund Department dated 1st June, 2021 and 15th June 2021 were also brought to the notice of the Ld. CIT(A). The decision of the Delhi Bench of the Tribunal in the case of FIL India Business and Research Services Pvt. Ltd. in ITA No. 412/Del/2023 was also relied upon where the Tribunal deleted the disallowance u/s 36(1)(va) of the Act on account of technical glitches in EPFO portal by observing as under : "8. Regarding the claim that the delay was due to the technical glitches, it is seen that the said submission is of general nature and the appellant has not substantiated that the delay was actually on account of technical glitches in EPFO portal. The appellant has also relied on the decision of Hon'ble Delhi Tribunal in the case of FIL India Business and Research Services Pvt. Ltd. (ITA no. 412/Del/2023) wherein the Hon'ble Tribunal has held that the disallowance u/s 36(1)(va) cannot be made if the delay was on account of technical glitches in EPFO portal." 4. However, the Ld. CIT(A) was not satisfied with the arguments advanced by the assessee. Relying on t....
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....e character of these two amounts, is evident from the use of different language. Section 2(24)(x) too, deems amount received from the employees (whether the amount is received from the employee or by way of deduction authorized by the statute) as income it is the character of the amount that is important, i.e., not income earned. Thus, amounts retained by the employer from out of the employee's income by way of deduction etc. were treated as income in the hands of the employer. The significance of this provision is that on the one hand it brought into the fold of "income" amounts that were receipts or deductions from employees income; at the time, payment within the prescribed time by way of contribution of the employees' share to their credit with the relevant fund is to be treated as deduction (Section 36(1)(va)). The other important feature is that this distinction between the employers' contribution (Section 36(1)(iv)) and employees' contribution required to be deposited by the employer (Section 36(1)(va)) was maintained and continues to be maintained. On the other hand, Section 43B covers all deductions that are permissible as expenditures, or out-goings formin....
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....are made beyond the due date, but before the date of filing the return, the deduction is allowed. That, however, cannot apply in the case of amounts which are held in trust, as it is in the case of employees' contributions- which are deducted from their income. They are not part of the assessee employer's income, nor are they heads of deduction per se in the form of statutory pay out. They are others' income, monies, only deemed to be income, with the object of ensuring that they are paid within the due date specified in the particular law. They have to be deposited in terms of such welfare enactments. It is upon deposit, in terms of those enactments and on or before the due dates mandated by such concerned law, that the amount which is otherwise retained, and deemed an income, is treated as a deduction. Thus, it is an essential condition for the deduction that such amounts are deposited on or before the due date. If such interpretation were to be adopted, the non-obstante clause under Section 43B or anything contained in that provision would not absolve the assessee from its liability to deposit the employee's contribution on or before the due date as a condition f....
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....o. 1356/Del/2024 for AY 2022-23 vide order dated 27.09.2024, he submitted that under identical circumstances the Tribunal has deleted the addition sustained by the Ld. CIT(A) on account of delay in deposit of employee's contribution to PF and ESIC where the Aadhar Number is not linked due to the technical issue. He accordingly submitted that in view of the decisions cited (supra) and in view of the technical glitches on the portal of PF organization, such delay of one day due to technical glitches should be condoned and the addition sustained by the Ld. CIT(A) should be deleted. 7. On the other hand, the Ld. DR fairly relied on the order of the Ld. CIT(A). 8. We have heard the rival arguments made by both the sides and perused the record. We find the only dispute in the instant appeal is regarding the allowability of deduction u/s 36(1)(va) of the Act on account of delay in deposit of employees' contribution to PF by one day due to the technical glitches on the portal of the PF organization. A perusal of the letter addressed by the assessee to the Regional Commissioner, the Employees Provident Fund reads under : 9. We find from pages 5 to 9 of the paper book that the asses....
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....tice, we set aside the order of the Ld. CIT(A) and direct the Assessing Officer to delete the addition of Rs. 1,43,232/-. Thus, the grounds raised by the assessee are allowed. 11. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 01st April, 2025. ============= Document 1 Sargam Retails Pvt. Ltd. € ........ ............ ........ .......... O.P.Te.3.938 Corporate Offices Ma per/ House. LO. Ness Sangemner - 422 000 Dia !! Anmednaper (M.6.) Inde Phone: +91 2425 225011 Fax: +01 2426 226003 .mas: . @/por&tulpen.com website: www.malpant.com Registered Offices 1. Mdbaug. Comeerul, Ganesh Kurd Rows. Aturapagar, Pune - 411 016 Dist: Pune, (M.5.) Inthis Phone. +91 25 66210100 Fax -91 20 66210169 eman na paniczealpari .... www.te:www.wpa\en.com Date 16/06/2021 To The Regional Commissioner, The Employees Provident Fund Office Satpur, Nasik Sub: Delay in remittance of monthly PF contributions for the month of May 2021 due to factors beyond our control i.e. PF Server error Ref: PF Code No.KDNSK0050929000,M/s Sargam Retails Pvt Ltd, Sangamner Dear Sir, We are law abiding establishment and have tried our best to be ....