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Tax Publishers Delay in payment of employee's contribution of PF/ESI by one day due date being Sunday - applicability of General Clauses act and SC judgment *Facts:* Assessee was disallowed delayed payment of employee's ESI and PF contributions pertaining to June and July 2018. On appeal CIT(A) sustained the disallowances. Stand of the assessee was that the payment was delayed by 1 day that too because the due date happened to be a Sunday and as per Section 10 of the General Clauses Act, 1897 where the due date happens to be a closed day/holiday then the next day would be the deemed due date as per the said enactment. Accordingly there was no delay from their end and the SC verdict of Checkmate Services Pvt. Ltd. v. CIT-1 in [Civil Appeal No. 2833 of 2016, dt. 12-10-2022] : 2022 TaxPub(DT) 6647 (SC) would not apply to their case. On higher appeal - Held in favour of the assessee that Section 10 of the General clauses Act, 1897 would apply to the assessee's case and there was no delay in remitting the employee's contributions of ESI/PF and no disallowance was warranted. Section 10 in The General Clauses Act, 1897 10 Computation of time. (1) Where, by any 19 [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 20, applies 2). This Section applies also to all 19 [Central Acts] and Regulations made on or after the fourteenth day of January, 1887. *Ed. Note:* It is quite likely that there are a number of rectification/reopening cases with even a 1 day delay in remittance citing the SC verdict of Checkmate Services. This decision will provide succour to all such cases if the facts are genuinely to be in fitment as in this decision. *Case:* G.D. Foods & Manufacturing (India) (P.) Ltd. v. Asstt. DIT 2023 TaxPub(DT) 4262 (Del-Trib)

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Delay in payment of employee's contribution of PF/ESI by one day due date being Sunday - applicability of General Clauses act and SC judgment

Facts:

Assessee was disallowed delayed payment of employee's ESI and PF contributions pertaining to June and July 2018. On appeal CIT(A) sustained the disallowances. Stand of the assessee was that the payment was delayed by 1 day that too because the due date happened to be a Sunday and as per Section 10 of the General Clauses Act, 1897 where the due date happens to be a closed day/holiday then the next day would be the deemed due date as per the said enactment. Accordingly there was no delay from their end and the SC verdict of Checkmate Services Pvt. Ltd. v. CIT-1 in [Civil Appeal No. 2833 of 2016, dt. 12-10-2022] : 2022 TaxPub(DT) 6647 (SC) would not apply to their case. On higher appeal -

Held in favour of the assessee that Section 10 of the General clauses Act, 1897 would apply to the assessee's case and there was no delay in remitting the employee's contributions of ESI/PF and no disallowance was warranted.

Section 10 in The General Clauses Act, 1897

10 Computation of time.

(1) Where, by any 19 [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 20, applies

2). This Section applies also to all 19 [Central Acts] and Regulations made on or after the fourteenth day of January, 1887.

Ed. Note: It is quite likely that there are a number of rectification/reopening cases with even a 1 day delay in remittance citing the SC verdict of Checkmate Services. This decision will provide succour to all such cases if the facts are genuinely to be in fitment as in this decision.

Case: G.D. Foods & Manufacturing (India) (P.) Ltd. v. Asstt. DIT 2023 TaxPub(DT) 4262 (Del-Trib)