2025 (9) TMI 856 - SCH - Income Tax

Special Leave Petition dismissed; Section 254(2) cannot be used to rectify assessments for delayed PF and ESIC payments

SC dismissed the Special Leave Petition and upheld the HC's finding that the Tribunal erred in exercising jurisdiction under Section 254(2) to rectify ... Rectification u/s 254 - jurisdiction of the Tribunal as conferred under sub-Section (2) of Section 254 - delayed payment of the statutory dues like the Provident Fund and Employees State Insurance Corporation amounts - Whether view taken by the Tribunal qua setting aside of the additions as made by the assessing officer, cannot be accepted to be a correct view, in view of the decision of the Supreme Court in Checkmate Services Private Limited [2022 (10) TMI 617 - SUPREME COURT] which was rendered subsequent to the orders passed by the Tribunal? HC held [2024 (12) TMI 1488 - BOMBAY HIGH COURT] Tribunal was in a patent error in exercising jurisdiction under Section 254 (2) in passing the impugned order. HELD THAT:- We see no grounds to interfere with the impugned judgment and order of the High Court. Hence, the Special Leave Petition is dismissed. Issues: Whether the Special Leave Petition challenging the High Court judgment warrants interference.Conclusion: The Special Leave Petition is dismissed and no interference is made with the impugned judgment and order of the High Court.