ITAT: Payment Within Due Date Cannot Be Disallowed for EPFO Technical Glitches

The Income Tax Appellate Tribunal (ITAT) ruled that employers cannot be penalised for delayed EPFO payments caused by technical glitches on the EPFO portal, so long as the statutory payment was initiated within the due date. The Tribunal emphasised that taxpayers should not suffer due to systemic deficiencies of government portals, especially when evidence shows timely payment instructions. The judgment clarifies the application of Section 36(1)(va) and addresses whether delays beyond the employer’s control should lead to disallowance. By acknowledging the increasing instances of technical errors in online compliance systems, the ITAT reinforced principles of fairness, natural justice, and purposive interpretation of tax statutes. The ruling is significant for HR departments, accountants, payroll managers, and organisations relying heavily on digital compliance portals.