Dell International Services India Private Limited Vs JCIT (ITAT Bangalore Bench)
Checkmate Cannot Travel Back in Time: Subsequent Supreme Court Ruling Cannot Convert a Debatable PF/ESI Issue into an Apparent Mistake u/s 154
Rectification Application Takes an Unexpected Turn
The assessee was engaged in providing IT-enabled services & related operations. It filed its return for AY 2011-12 on 30.11.2011, declaring total income of ₹35.55 crore.
Scrutiny assessment was completed u/s 143(3) r/w Section 144C(13) on 27.01.2016, determining total income at ₹29.94 crore. Pursuant to an order passed u/s 263, the assessment was subsequently modified & total income was computed at ₹150.45 crore, mainly after disallowing the deduction claimed u/s 10AA.
The assessee noticed certain mistakes in the modified assessment order & filed an application u/s 154 on 12.02.2018, seeking their rectification.
While considering the mistakes pointed out by the assessee, the AO suo motu noticed another issue. The employees’ contributions towards Provident Fund & ESI, aggregating to ₹87,67,420, had been deposited after the due dates prescribed under the respective welfare statutes.
After considering the assessee’s response, the AO passed a rectification order dated 10.06.2019, disallowing ₹87,67,420 u/s 36(1)(va) r/w 2(24).
CIT(A) Relies on Subsequent Checkmate Decision
The assessee challenged the rectification order before the CIT(A)/NFAC.
