SHYAM SPECTRA PVT. LTD.,DELHI vs. ACIT, DELHI

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ITA 9102/DEL/2025Status: DisposedITAT Delhi05 June 2026AY 2018-194 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue to the Assessing Officer (AO) to verify the due dates for deposit and consider the assessee's contentions regarding payments made after holidays. The AO is to decide the issue in accordance with law and the cited precedents.

What were the facts?

The assessee, Shyam Spectra Pvt. Ltd., appealed against a disallowance of employee's contribution to PF & ESI. The assessee claimed the contributions were made with a minor delay due to holidays falling on the due dates.

What were the issues?

Whether the disallowance of employee's contribution to PF & ESI is justified when payments were made with a slight delay due to holidays, and if such delays should be considered in light of general clauses and working days.

Which sections of the Income-tax Act were involved?

Section 36(1)(va)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘B’: NEW DELHI

Before: SHRI C.N. PRASAD & SMT RENU JAUHRI

Hearing: 23.04.2026Pronounced: 05.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE SHRI C.N. PRASAD, JUDICIAL MEMBER AND SMT RENU JAUHRI, ACCOUNTANT MEMBER

ITA No.9102/Del/2025 [Assessment Year: 2018-19] Shyam Spectra Pvt. Ltd. Vs ACIT A-60, Naraina Industrial Delhi Area, New Delhi PAN No. AADCC3694E Appellant Respondent Appellant by Sh. Sumit Lalchandani, Advocate Sh. Shivam Yadav, Advocate Respondent by Sh. Rajesh Kumar Dhanesta, Sr. DR Date of Hearing 23.04.2026 Date of Pronouncement 05.06.2026 ORDER PER C.N. PRASAD, J.M. This appeal is filed by the assessee against the order of the Ld. CIT(A)/NFAC dated 30.10.2025 for the A.Y. 2018-19.

2.

The only issue in appeal of the assessee is respect of disallowance on account of employee’s contribution to PF & ESI u/s.36 (1)(va) of the Act. Ld. Counsel for the assessee at the outset submitted that the contributions were made by

the assessee with delay of 1 or 2 days for the reason that 15th/16th of the month being closed / national holiday.

3.

Ld. Counsel for the assessee also submitted that in a number of cases the Tribunal restored the issue to the file of the AO to verify the due date for deposit whether it shall be reckoned from the month in which salary disbursement was made. Reliance was placed on the following decisions :-

1.

PCIT Vs. Pepsico India Holding Pvt. Ltd. ITA No.12.2023 dated 05.09.2023 Delhi High Court 2. Sentinel Consultants (P.) Ltd. v. ACIT [2023] 202 ITD 154 (Delhi- Trib.) 3.Sai Computers Ltd. v. Assistant Director of Income- tax, CPC [2023] 155 taxmnan.com 607 (Delhi-Trib.) 4.Lall Construction Company v. ACIT, CPC ITA No.4206/Del/2024 5. Sharad Insulations & Interiors Private Limited v. ACIT, Circle-23(1), Delhi ITA No. 2757/Del/2022 6. Kohinoor Televideo Private Limited v DCIT Circle 5(2)(1), Mumbai ITA No. 6325/Mum/2024 7. Commissioner of Income-tax v. Punjab Financial Corporation Ltd. [2007] 295 ITR 510 (Punjab & Haryana) 8.Commissioner of Income-tax v. High Land Produce Co. Ltd. [1976] 102 ITR 803 (Kerala) 9.Commissioner of Income-tax v. High land Produce Co. Ltd. [1086] 158 ITR 419 (SC)

4.

Thus, Ld. Counsel for the assessee submitted that the issue may be restored to the file of the AO to verify the contribution Act viz-a-viz the due date and also to apply general clauses and consider the payments made on any working day which falls immediately after a closed holiday and being the due date since due date for remittance i.e. 15th was closed on account of any declared holiday.

5.

Heard rival contentions and perused the orders of the authorities below. We restore this issue to the file of the AO to examine the contentions of the assessee and decide the issue in accordance with law and keeping in view various decisions relied on by the assessee.

6.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 05.06.2026.

Sd/- Sd/- [RENU JAUHRI] [C.N. PRASAD] ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 05.06.2026

NEHA , Sr.P.S.*

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