Rectification for apparent mistake and delayed provident fund or ESI contributions can be disallowed in return processing.

A mistake apparent from the record justified rectification of the Tribunal's earlier order under section 254(2), and the Revenue's miscellaneous application was allowed. The Tribunal also accepted that employees' contributions to provident fund and ESI deposited beyond the prescribed due date could be disallowed while processing the return under section 143(1). The result was recomputation of income by making the delayed payment disallowance, with the issue decided against the assessee.

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Issues: Whether the Revenue's miscellaneous application for rectification under section 254(2) of the Income-tax Act, 1961 deserved to be allowed and whether late payment of employees' contribution to provident fund and ESI deposited beyond the due date could be disallowed while recomputing income.

Analysis: The Tribunal followed the lead order in the connected matters and held that there was a mistake apparent from record warranting rectification. It further accepted that the disallowance of employees' contribution deposited beyond the due date could be made while processing the return under section 143(1) of the Income-tax Act, 1961.

Conclusion: The rectification application was allowed and the impugned issue was decided against the assessee, with directions to recompute income by disallowing the delayed employees' contribution to provident fund and ESI.

Ratio Decidendi: An apparent mistake in the Tribunal's earlier order justifies rectification under section 254(2) of the Income-tax Act, 1961, and employees' contribution to welfare funds deposited beyond the prescribed due date is liable to disallowance in the stated processing framework.

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