MAHESH SUNNY ENTERPRISES PRIVATE LIMITED,DELHI vs. DCIT, CIRCLE-16(1), DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18
arises against the Addl./JCIT(A)-1, Bengaluru’s DIN & order No.
ITBA/APL/S/250/2025-26/1082129793(1) dated 30.10.2025, in proceedings u/s 154 of the Income Tax Act, 1961 (in short “the Act”).
Heard both the parties at length. Case file perused.
It is noticed at the outset during the course of hearing that the learned Assessing Officer had framed his section 143(3) assessment on 12.12.2019; and, thereafter, he invoked his section 154 rectification juri iction to disallow the assessee’s ESI/PF claim of Rs.29,26,971/- by issuing notice dated 06.06.2022 culminating in the final rectification order in issue dated 26.09.2022 in issue. Mahesh Sunny Enterprises Pvt. Ltd.
2
4. The Revenue vehemently argues that once the assessee has been found to have not complied with the due date in the corresponding statute, both the learned lower authorities’
impugned action invoking section 154 rectification deserves to be upheld.
This tribunal finds no merit in the Revenue’s foregoing vehement contentions. This is for the precise reason that given the fact that the learned Assessing Officer had duly considered the instant ESI/PF issue in his regular assessment, revisiting the very binding by way of section 154 rectification is no more permissible going by T. S. Balaram, ITO vs. Volkart Bros. (1971) 82 ITR 40 (SC). The impugned rectification order dated 26.09.2022 is hereby reversed therefore.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 23/12/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 23/12/2025
*Subodh Kumar, Sr. PS*