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Judgment
This assessee’s appeal for Assessment Year 2017-18 arises against the Addl./JC IT(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 p arties at length. Case file perused.
It is noticed at the outset during the co urse of hearing that the lear ned Assessing Officer had framed his section 143(3) assessment o n 12.12.2019; and, thereafter, he invoked his section 15 4 rectification jur isdiction to disallow the assessee’s ESI/PF claim of Rs.29,26,971/- by issuing no tice dated 06.06.2022 culminating in the final rectification order in issue dated 26.0 9.2022 in issue.
The Revenue vehemently argues that once the assessee has been found to have not complied with the due date in the correspond ing statute , both the learned lower author ities’ impugned actio n invoking sectio n 154 rectificatio n deserves to be uphe ld.
This tribunal finds no merit in the Revenue’s foregoing vehement conte ntions. T his is for the precise reaso n that given the fact that the lear ned 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.