Hi Anjaneyulu. Since the task counts the work item and changes it to state="Expired", the schedule and dates are being detected correctly.
The issue might be that the interceptor sets expiration and wakeUpDate directly, but does not configure the standard NotificationConfig that drives LCM escalation processing. NotificationConfig is only created when workItemHoursTillEscalation is present on the Approval step. Without it, the Check Expired Work Items task would not be able to process the work item through the standard expiration path. (Ref)
It might be worth trying the standard approach instead. Configure the Approval step with:
<Arg name="workItemHoursTillEscalation"
value="ref:workItemHoursTillExpiration"/>
<Arg name="workItemEscalationRule"
value="Expire Work Item"/>
<Arg name="workItemEscalationStyle"
value="escalation"/>
Then create Expire Work Item as an Escalation type rule:
return null;
Returning null should expire the work item through the standard processing instead of reassigning it. (Ref)
If you try this approach, I would suggest removing the direct setExpiration(), setWakeUpDate(), saveObject(), and commitTransaction() from the interceptor so that two different expiration mechanisms do not conflict. Testing with a new request should confirm if this resolves the archival. Also worth double-checking that Approval is selected under IdentityIQ Configuration > Work Items > Work Item Archives. (Ref)