IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER Assessment Year: 2018-19

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

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.

2. 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 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.

3. Perused the records and heard learned representative for assessee and learned Sr. DR for revenue.

4. 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 paper book does not find a mention in the earlier order passed by this Tribunal, which led this Tribunal to hear this limited issue.

5. The relevant section 10 of the Gen