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Informative

Wrong Reporting of PF/ESI Deposit Dates by Tax Auditor Causes Excess Disallowance: ITAT Directs AO...

Update / Judgement Date

26 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Auditing and AssuranceIncome Tax

The ITAT has directed an Assessing Officer (AO) to verify and "restrict a disallowance only to late payments" after a "tax auditor" made a "wrong reporting of PF/ESI deposit dates." The tribunal's decision, which is a significant victory for the taxpayer, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.