M/S SATYAM SOLUTIONS LTD,GWALIOR vs. DCIT/ACIT1(1), , GWALIOR
Facts
The assessee's appeal against the CIT(A)'s order was dismissed. The assessee had filed an application for recall of the earlier order, arguing that the due dates for PF and ESI contributions fell on holidays, and the payments were made on the next working day. This issue was not considered in the original order.
Held
The Tribunal, considering Section 10 of the General Clauses Act, held that if a due date falls on a holiday, payment made on the next working day is considered timely. This view is supported by judicial precedents.
Key Issues
Whether deposits of employee's contribution to PF and ESI made on the next working day, after the due date fell on a holiday or Sunday, are to be considered as valid deposits.
Sections Cited
Sec. 250 of the Income-tax Act, 1961, Sec. 254(2) of the Income Tax Act, 1961, Sec. 143(1) of the Act, Sec. 10 of the General Clauses Act, 1897
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER ITA No. 167/Agr/2022 Assessment Year: 2018-19
M/s. Satyam Solutions Ltd., Vs. DCIT/ACIT 1(1), M-7, Laxmipuram, Transport Gwalior. Nagar, Gwalior-474006 (MP). PAN :AABCK0612L (Appellant) (Respondent)
Assessee by Sh. Navin Gargh, Advocate Department by Sh. Shailendra Srivastava, Sr. DR
Date of hearing 16.10.2025 Date of pronouncement 26.11.2025
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal was preferred by assessee against the impugned order dated 17.08.2022 passed in Appeal No. CIT (A), Gwalior/10212/2019-20 by
the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018-19, wherein the ld. CIT(Appeals) has dismissed
assessee’s appeal against the assessment order dt. 16.10.2019. Assessee’s second appeal was also dismissed by this Tribunal vide common order dated 23.02.2024. However, this Tribunal, vide order dated
ITA No. 167/Agr/2022
27.08.2025, passed u/s 254(2) of the Act on assessee’s miscellaneous
application, partially recalled its earlier order dated 23.02.2024 to the extent
of hearing as to whether the deposits of employee’s contribution towards
ESI and PF of Rs.4,34,232/- (Rs.1,51,733 + 2,82,499) made on the next
dates of due dates, which fell on national holiday/Sunday, be considered as
valid deposit.
Briefly stating, the present second appeal, along with ITA No.
168/Agr/2022, had earlier been dismissed by the Tribunal, vide common
order dated 23.02.2024. The dismissal was based on the ground that the
disallowance of employees’ contribution towards Provident Fund (PF) and
Employees State Insurance Corporation (ESIC) was covered by the
judgment of the Hon’ble Supreme Court in Checkmate Services (P) Ltd. vs.
CIT (2022) 143 taxmann.com 178 (SC). Subsequently, the assessee filed
an application under section 254(2) of the Income Tax Act, 1961, seeking
recall of the said order dated 23.02.2024, contending that his submissions
with regard to the due dates for deposit of employees’ contribution to PF
and ESI amounting to Rs.4,34,232/-, comprising Rs.1,51,733/- and Rs.
2,82,499/-, had fallen on a gazetted holiday and a Sunday respectively, and
that the deposits were accordingly made on the immediately succeeding
working day, had not been considered by the Tribunal, while passing the
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earlier order. This Bench of the Tribunal, vide order dated 27.08.2025,
partially recalled its earlier order dated 23.02.2024 to a limited and specific
issue for adjudicating as to whether the aforesaid employees’ contribution
to PF/ESI, deposited by the assessee on the next working day, when the
statutory due date fell on a Sunday or gazetted holiday, could be treated as
having been made within the prescribed time. The appeal has, thus, been
taken up for hearing to this limited extent only.
Perused the records and heard learned representative for assessee
and learned Sr. DR for revenue.
Perusal of common order dated 23.02.2024 passed in ITA No. 167 &
168/Agr/2022 for A.Y. 2018-19 and 2020-21, shows that an amount of
Rs.10,42,925/- was added in assessee’s income, vide order dated
16.10.2019 assessed u/s. 143(1) of the Act as late deposit of PF/ESI with
respect to employees’ contribution, which was confirmed by Ld.
CIT(Appeals). The Tribunal also confirmed the aforesaid addition in view of
law laid down by Hon’ble Supreme Court in Checkmate Services(P) Ltd. v.
CIT (2022) 143 taxmann.com 178(SC). However, according to Ld. AR, the
due dates prescribed under the relevant Acts for payment of the aforesaid
amounts towards employees’ contribution to PF/ESI fell on a gazetted
holiday or a Sunday. This submission of assessee contained in assessee’s
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paper book does not find a mention in the earlier order passed by this
Tribunal, which led this Tribunal to hear this limited issue.
The relevant section 10 of the General Clauses Act, 1897 read as
under :
“10. Computation of time.-(1) Where, by any [Central Act] or Regulation made after the commencement of this Act, any act or proceeding is directed or allowed to be done or taken in any Court or office on a certain day or within a prescribed period, then, if the Court or office is closed on that day or the last day of the prescribed period, the act or proceeding shall be considered as done or taken in due time if it is done or taken on the next day afterwards on which the Court or office is open: Provided that nothing in this section shall apply to any act or proceeding to which the Indian Limitation Act, 1877 (15 of 1877), applies. (2) ……………………………………………” So, according to section 10 of General Clauses Act, 1897, if a due
date falls on a holiday, the payment is considered to be made in time, if it is
made on the next working day. Accordingly, the payments made by the
assessee on the next working day, immediately succeeding any holiday,
are to be considered as having been made within due date. This view
further finds support from judicial precedents in Aero Club vs. ACIT (2023)
156 taxmann.com 74 (Delhi High Court), wherein it has been held that
where last date to deposit amounts payable towards PF and ESI, fell due
on a national holiday, the deposit, made on following date was amenable to
deduction. However, such deposit of Rs.4,34,232/- out of total of 4 | P a g e
ITA No. 167/Agr/2022
Rs.10,42,925/- claimed by assessee originally in the grounds of ITA No.
167/Agr/2022, require verification at the end of Assessing Officer.
Assessing Officer, is thus, directed to verify the amount of Rs.4,34,232/-. If
it is found to have been deposited by the assessee on next day to
holiday/gazette holiday, the Assessing Officer shall give credit to the
assessee. The matter is restored back to the file of Assessing Officer, who
will pass order afresh after considering assessee’s submissions in terms of
what has been observed hereinbefore. Needless to say that Ld. Assessing
Officer shall ensure the compliance of natural justice. Appeal is, thus,
liable to be partly allowed for statistical purposes.
In the result, assessee’s appeal is partly allowed for statistical
purposes. The impugned order dated 17.08.2022 is set aside.
Order pronounced in the open court on 26.11.2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 26.11.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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