Mistake apparent from record allows Tribunal correction; delayed employees' PF/ESI contributions remain disallowable under welfare law.

A mistake apparent from the record may be corrected under section 254(2) of the Income-tax Act, and the Tribunal treated its earlier order as amenable to modification on that basis. Applying Checkmate Services, it held that employees' contribution to PF/ESI deposited after the due date under the relevant welfare statutes is disallowable. The Revenue's miscellaneous application was therefore allowed, the earlier order was modified, and the disallowance was directed to stand against the assessee.

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Issues: Whether the Revenue's miscellaneous application seeking modification of the earlier Tribunal order was maintainable and whether late payment of employees' contribution to PF/ESI could be disallowed.

Analysis: The Tribunal held that there was a mistake apparent from the record within the scope of section 254(2) of the Income-tax Act, 1961. Relying on the Supreme Court's decision in Checkmate Services and the Tribunal's earlier view on processing under section 143(1), it held that employees' contribution to PF/ESI deposited beyond the due date prescribed under the respective welfare statutes was liable to be disallowed.

Conclusion: The Revenue's application was allowed and the impugned order was modified, with the disallowance directed to be made against the assessee.

Final Conclusion: The Tribunal reopened and corrected its earlier order and sustained the disallowance of delayed employees' contribution to PF/ESI.

Ratio Decidendi: A mistake apparent from the record can be corrected under section 254(2), and employees' contribution to PF/ESI paid beyond the statutory due date is disallowable.

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