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Income Tax Act

Woodland (Aero Club) Private Limited Director Vs Assistant Commissioner Of Income Tax - Income Tax Act - Due Date - PF - ESI Deduction

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Income Tax Act 1961 - Section 2(24)(x), 36(1) (va) -the interpretation of the words “due date”- One view: there is no difference between employees and employer contribution to PF, ESI and both would be guided by the provisions of Section 43B of the Act so as to allow deduction in the hands of the assessee - employer if the contributions are deposited on or before the due date of filling of return under Section 139(1) of the Income Tax Act, 1961 - Another view- Any sum received by the assessee - employer from any of his employees as contribution towards PF & ESI is the income of the assessee under Section 2(24)(x) and it continues to be so, unless it is credited by the assessee - employer to the employee's account in the relevant fund on or before the due date specified under the relevant PF, ESI Act. 7. The employee's contribution towards PF, ESI received by the 3 assessee - employer is his income under Section 2(24)(x) and if he wants to have it deducted from his income under Section 36(1)(va), he must credit the same to the employee's account in the relevant fund on or before the due date specified under the relevant PF,ESI Act - Supreme Court to examine - Issued Notice.

Case Info


Case name and neutral citation: “WOODLAND (AERO CLUB) PRIVATE LIMITED DIRECTOR vs ASSISTANT COMMISSIONER OF INCOME TAX”, arising as Petition for Special Leave to Appeal (Civil) No. 1532 of 2026

CoramThe Bench consists of:Hon’ble Mr. Justice J.B. PardiwalaHon’ble Mr. Justice Sandeep Mehta


Judgment / Order dateThe Supreme Court order is dated 27‑01‑2026.


Statutes / provisions referredThe order discusses and refers, in particular, to:

  • Income‑tax Act, 1961:
    • Section 2(24)(x)
    • Section 28
    • Section 36(1)(iv)
    • Section 36(1)(va) (including the Explanation and meaning of “due date”)
    • Section 43B (and Explanation 5)
    • Section 139(1) (due date for filing return of income)
  • Employees’ Provident Fund laws (referred to generally as the “relevant PF Act”)
  • Employees’ State Insurance Act, 1948 (ESI Act)

Case law and citations mentioned


View that delayed deposit of employees’ contribution is income u/s 2(24)(x) and deduction is governed strictly by section 36(1)(va) “due date” (in favour of Revenue):

  • Unifac Management Services (India) (P.) Ltd. v. Dy. CIT, [2018] 100 taxmann.com 244 / [2019] 260 Taxman 60 / [2018] 409 ITR 225 (Mad)
  • CIT v. Gujarat State Road Transport Corpn., [2014] 41 taxmann.com 100 / 366 ITR 170 / 223 Taxman 398 (Guj)
  • CIT v. Merchem Ltd., [2015] 61 taxmann.com 119 / 235 Taxman 291 / 378 ITR 443 (Ker)
  • B.S. Patel v. Dy. CIT, [2010] 326 ITR 457 / [2008] 171 Taxman 304 (MP)
  • Popular Vehicles & Services Pvt Ltd v. CIT, [2018] 96 taxmann.com 13 / 257 Taxman 120 / 406 ITR (Ker)

View that employees’ and employer’s contributions are both covered by section 43B and are allowable if paid before due date u/s 139(1) (in favour of assessee):

  • CIT v. Aimil Ltd., [2010] 188 Taxman 265 / 321 ITR 508 (Delhi)
  • Pr. CIT v. Plamman HR (P) Ltd., ITA No. 170 of 2018, dated 12.02.2018 (Delhi HC)
  • CIT v. Nipso Polyfabriks Ltd., [2013] 350 ITR 327 / 213 Taxman 376 / 30 taxmann.com 90 (HP)
  • Sagun Foundry (P.) Ltd. v. CIT, [2017] 78 taxmann.com 47 (All)
  • CIT v. Udaipur Dugdh Utpadak Sahakari Sangh Ltd., [2014] 366 ITR 163 / [2013] 217 Taxman 64 (Mag.) / 35 taxmann.com 616 (Raj)
  • CIT v. Sabari Enterprises, [2008] 298 ITR 141 (Kar)
  • CIT v. Hemla Embroidery Mills (P.) Ltd., [2014] 366 ITR 167 / [2013] 217 Taxman 207 / 37 taxmann.com 160 (P&H)
  • CIT v. Ghatge Patil Transports Ltd., [2014] 368 ITR 749 / [2015] 53 taxmann.com 141 / 228 Taxman 340
  • Bihar State Warehousing Corpn. Ltd. v. CIT, [2016] 368 ITR 410 (Patna)
  • CIT v. Vijay Shree Ltd., [2014] 43 taxmann.com 396 / 224 Taxman 12 (Cal) (Mag.)
  • CIT v. Industrial Security & Intelligence India Pvt. Ltd., Tax Case (Appeal) Nos. 585 & 586 of 2015 & M.P. No. 1 of 2015, dated 24‑07‑2015 (Mad)
  • CIT v. George Williamson (Assam) Ltd., [2006] 284 ITR 619 (Gauhati)
  • CIT v. Kichha Sugar Ltd., [2013] 356 ITR 351 / 216 Taxman 90 / 35 taxmann.com 54 (Uttarakhand)
  • Pr. CIT v. Plamman HR (P) Ltd., ITA No. 599 of 2017, dated 11.09.2017
Woodland (Aero Club) Private Limited Director Vs Assistant Commissioner Of Income Tax - Income Tax Act - Due Date - PF - ESI Deduction
Woodland (Aero Club) Private Limited Director Vs Assistant Commissioner Of Income Tax - Income Tax Act - Due Date - PF - ESI Deduction .pdf
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