ITAT Delhi – Sec 154 Rectification Invalid Based on Subsequent SC Judgment; PF/ESI Disallowance Deleted

E Factor Adventure Tourism Pvt. Ltd Vs DCIT (ITAT Delhi) In E Factor Adventure Tourism Pvt. Ltd. vs DCIT (AY 2017-18), the ITAT Delhi partly allowed the assessee’s appeal and held that rectification u/s 154 cannot be invoked merely because of a later Supreme Court judgment. The AO had reopened the concluded assessment to disallow employees’ PF/ESI contributions relying on Checkmate Services Pvt. Ltd. decided after completion of assessment; however, the Tribunal observed that at the time of original assessment the legal position was settled by various High Courts allowing deduction if paid ...