NTPC GE Power Services Private Limited vs Commissioner Of Income Tax(Appeals)

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.

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.

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 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.

This assessee’s appeal is allowed.