Section 154 Rectification on ESI/PF Deduction Not Permissible: ITAT Delhi

Climax Overseas Pvt. Ltd Vs DCIT (ITAT Delhi) The appeal by Climax Overseas Pvt. Ltd. challenged an order from the Commissioner of Income-tax (Appeals) (CIT(A)), which had sustained a rectification order issued by the Assessing Officer (AO) under Section 154 of the Income Tax Act, 1961 (the Act). The core dispute centered on the AO’s attempt to disallow a deduction for the employee contributions to ESI and Provident Fund (PF) on the grounds of delayed payment. The company’s original assessment was completed under Section 143(3) on December 29, 2019, where the deduction for ESI ...