NTPC GE POWER SERVICES PVT. LTD.,DELHI vs. DCIT, DELHI

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ITA 3208/DEL/2026Status: DisposedITAT Delhi22 September 2026AY 2017-20183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that a subsequent decision from a higher forum (Checkmate Services Pvt. Ltd.) cannot be the sole basis for a rectification under section 154. Relying on Prakash Kohli vs ITO, the Tribunal quashed the rectification orders.

What were the facts?

The assessee's appeal concerns the disallowance of PF/ESI payments of Rs. 7,05,657/- due to delayed payment. This disallowance was made by the lower authorities through a section 154 rectification proceeding.

What were the issues?

Whether a section 154 rectification can be made solely based on a subsequent Supreme Court decision, and if delayed PF/ESI payments are disallowable.

Which sections of the Income-tax Act were involved?

Section 154,Section 36(1)(va),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’, NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI SANJAY AWASTHI

For Appellant: Ms. Rajani Sanwal, CA
For Respondent: Shri Novel Roy, Sr. DR
Hearing: 09.09.2026Pronounced: 09.09.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI

BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI SANJAY AWASTHI, ACCOUNTANT MEMBER ITA No. 3208/Del/2026 Assessment Year: 2017-18 NTPC GE Power Services Private Vs Commissioner of Income Limited Tax(Appeals), 6th Floor Tower B, Indian Glycol Income Tax Department, Limited Building, Sector- 126, National Faceless Appeal Tower-B, Noida, Centre. Uttar Pradesh (APPELLANT) (RESPONDENT) PAN No. AABCN3558J

Assessee by: Ms. Rajani Sanwal, CA Revenue by : Shri Novel Roy, Sr. DR

Date of Hearing: 09.09.2026 Date of Pronouncement: 09.09.2026 ORDER PER SATBEER SINGH GODARA, JM: This assessee’s appeal ITA No. 3208/Del/2026 for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./ JCIT(A) [in short, the “CIT(A)”], Agra’s order dated 30.01.2026, passed in DIN & Order No. ITBA/APL/S/250/2025-26/1085380418(1) dated 01.04.2026, involving proceedings u/s 143(3) r.w.s. 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively.

Heard both the parties. Case file perused.

2.

We advert to the sole substantive ground raised in the instant appeal at the assessee’s behest. Coming to the relevant facts, it is noticed from a perusal of case records that both the learned lower authorities have involved their section 154 rectification jurisdiction for the purpose of disallowing the assessee’s PF/ESI payments of Rs. 7,05,657/- on account of delayed payment thereof u/s 36(1)(va) of the Act. They have admittedly placed reliance on hon’ble apex court’s landmark decision in Checkmate Services Pvt. Ltd. Vs. CIT [2022] 143 taxmann.com 278(SC) whilst concluding that the learned Assessing Officer’s section 143(3) assessment completed in the assessee’s case on 09.12.2013 deserves to be rectified in very terms which stands upheld in the lower appellate discussion leaving the assessee aggrieved.

3.

We have given our thoughtful consideration to the assessee’s and the Revenue’s vehement submissions. We wish to reiterate here that all what both the learned lower authorities have done is to exercise their section 154 rectification jurisdiction as per Checkmate Services Pvt. Ltd. Vs. CIT [2022] 143 taxmann.com 278(SC) (supra). We are of the considered view in this factual backdrop that such a subsequent decision coming from an hon’ble higher forum could not form the sole basis for such a rectification

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in light of Prakash Kohli vs ITO (2025) 176 taxmann.com 481(Bom) settling the issue in assessee’s favour and against the department. We accordingly accept the assessee’s instant sole substantive ground to quash both the learned lower authorities’ respective section 154 rectification findings in above terms. Ordered accordingly.

4.

This assessee’s appeal is allowed.

Order is pronounced in open court on 09.09.2026.

Sd/- Sd/- (SANJAY AWASTHI) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 22.09.2026 *Pooja Mittal, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR

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