TaxTMI 
TaxTMI 
2026 (9) TMI 1236
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....Ld. NFAC'] u/s 250 of the Act which ascended out order of rectification passed by Central Processing Centre, Bengaluru ['Ld. CPC] u/s 154 of the Act in relation to assessment year 2022-23 ['AY']. 2. The facts of the case succinctly stated are that; the assessee is Indian Coffee workers Co-operative society engaged in the business of running hotel/restaurant chain in the state of Madhya Pradesh. The assessee e-filed its return of income on 19/10/2022 declaring NIL income after claiming deduction u/s 80P of chapter VI-A of the Act. The original return was subsequently revised on 30/12/2022. The revised return was summarily/electronically proceeded with prima-facie adjustment u/s 143(1)(a) of the Act with a disallowance of Rs. 1,90,67,270/-....
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....)(va) of the Income-tax Act, 1961, particularly when the delay in payment for the month of May-2021 has been beyond the control of the appellant as the same has been deposited after few hours of expiring the due date and was due to technical glitches persisting in EPFO portal. 4⁠. The learned Commissioner of Income tax (Appeal) NFAC, New Delhi was not Justified in confirming the addition of Rs. 1,90,67,290 without appreciating that the CPC ought to have considered the application under sec. 154 keeping in view the Circular No. C-I/Misc/Pandemic Relief / 2021 / Vol-l Dated 31/08/2021 issued by the Employee Provident Fund Organisation giving relief to the establishment from any penal actions in case of delay in deposit of dues/....
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....1 was filed on the due date; but payment could not be remitted owning to pending employees Aadhar-seeding. The payment was scheduled for the day of filing of ECR to ensure the compliance, however same was debited to the assessee's account immediately on next day morning. In these circumstances, assessee prayed that it should not be penalised for the reasons that; (a) one-day delay occurred in remitting the contribution for the month of May, 2021 was beyond the control of assessee (b) said delay was attributable to non-availability of EPFO web-portal for remittance owning to ongoing Aadhar-seeding exercise undertaken (c) said delay was also attributable to technical glitches in payment-gateway (d) and most importantly vide notification dt. 3....
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....y dispute between the rival parties that, the action of the Revenue is copiously is accordance with settled position of law laid down by Hon'ble Supreme Court in the case of 'Checkmate Services Pvt Ltd. Vs CIT' (supra). 6. The only issue of dispute in the present appeal thus pertains to as to whether one-day delay caused in remitting the contribution to the funds constitutes violation of condition for claiming deduction u/s 36(1)(va) of the Act when such delay was arisen exclusively on-account of non-availability of payment-gateway coupled with technical glitches at EPFO webportal meant for filing ECR & remittance and beyond the appellant's control. 7. Albeit the subject matter is no-more res-integra in the light of Hon'ble Supreme Co....
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....5/366 days a year to receive all electronic remittances. The remittee EPF office/ respective fund had in the month of May, 2021 undertaken Aadhar seeding of employees and therefore EFPO's website and designate bank account was not effectively available for filing ECR and payment/remittance of contribution on the due date (15th May, 2021). The said facts finds solidified by the notification/circular dt. 31/08/2021 issued by the EPFO. 9. We also note that, the appellant was to under obligation to remit the contribution along-with monthly ECR return. From the material placed on record it is clear that said ECR return for the month of May was filed by the appellant on 15/06/2021 and scheduled the remittance/payment online. The said return wa....