Rectification u/s 154 Disallowing Employees’ PF/ESIC Without Notice Unsustainable

Avia Xpert Pvt. Ltd. Vs ITO (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) in Delhi has set aside a rectification order passed by the Centralized Processing Centre (CPC), Bengaluru, against Avia Xpert Pvt. Ltd. The order, dated August 9, 2024, concluded that the CPC’s action of disallowing employee contributions to Provident Fund (PF) and Employees’ State Insurance (ESI) was unsustainable for two primary reasons: a failure to issue a prior notice to the assessee and the fact that the legal issue was still under debate at the time of the order. The case pertains to the Assess...