Rectification of Mistake – Subsequent ruling of the Hon’ble Supreme Court cannot be a ground for invoking the provisions of Section 254(2).

10. ITAT PUNE & Others vs. Prakash D. Koli

[WP NO. 10075 OF 2024. Dated: 8/07/2025 ]

Section 254(2)

Rectification of Mistake - Subsequent ruling of the Hon’ble Supreme Court cannot be a ground for invoking the provisions of Section 254(2).

In the present case, initially, the Assessing Officer made a disallowance of ₹24.74 lakhs in the intimation under Section 143(1) of the Act on the ground that the Assessee had deposited the employee’s share of EPF and ESI etc., belatedly, and hence, they were not allowed to claim a deduction of this amount under Section 36 (1)(va) of the Act. Being aggrieved by this disallowance, the Assessee filed an Appeal before the CIT(A) without any success. In these circumstances, the Assessee finally approached the ITAT. The ITAT, by its order dated 22nd June 2022 [passed under Section 254(1)], observed that the employee’s share of EPF and ESI etc., was deposited prior to the due date of filing of returns under Section 139(1), and hence, the Assessee is entitled to the deduction. It accordingly allowed the deduction under Section 36(1)(va) of the Act. In reaching this conclusion, the Tribunal relied on the judgment of the Hon’ble Himachal Pradesh High Court in the case of CIT vs. Nipso Polyfab