Rectification of apparent mistake upheld as delayed employees' PF/ESI contributions remain disallowable under governing law.

A Tribunal may rectify an earlier order under section 254(2) where it contains a mistake apparent from the record, including failure to apply the governing law on delayed employees' contribution to PF/ESI. Applying Checkmate Services and its own view on processing under section 143(1), the Tribunal held that employees' contributions deposited after the prescribed due date under the welfare enactments are disallowable. The Revenue's rectification applications were therefore allowed, and the income was directed to be recomputed by disallowing the delayed PF/ESI contribution.

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Issues: Whether the Revenue's miscellaneous applications for rectification/restoration of the Tribunal's earlier order were maintainable and whether the late deposit of employees' contribution to PF/ESI was liable to disallowance.

Analysis: The Tribunal treated the earlier order as containing a mistake apparent from the record within the meaning of section 254(2) of the Income-tax Act, 1961 and allowed rectification. Relying on the Supreme Court decision in Checkmate Services and its own earlier view on processing under section 143(1) of the Income-tax Act, 1961, the Tribunal held that employees' contribution deposited beyond the prescribed due date under the relevant welfare enactments was disallowable.

Conclusion: The Revenue's applications were allowed and the disputed issue was decided against the assessee, with the Assessing Officer directed to recompute income by disallowing the delayed employees' PF/ESI contribution.

Ratio Decidendi: A rectifiable mistake exists where the Tribunal's earlier order fails to apply the governing law on delayed employees' contribution to welfare funds, and such delayed contribution is liable to be disallowed even in processing under section 143(1) of the Income-tax Act, 1961.

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