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2017 (4) TMI 109 - ITAT JAIPURNon-deduction of TDS u/s 192 - benefit of leave travel concession granted by the assessee bank to its employees - Held that:- As decided in M/s State Bank of India Versus DCIT (TDS) , Kanpur [2016 (3) TMI 282 - ITAT LUCKNOW ] in the interim order, the Hon’ble Madras High Court has permitted the bankers not to deduct TDS on or after 16.2.2015 on the amount paid/reimbursed to the employees of the bank in respect of LTC/HTC availed where the employee has visited a foreign city/country, irrespective of the fact whether the LFC bills were submitted and paid prior to 16.2.2015; meaning thereby this Circular was passed consequent to the interim order of the Hon’ble Madras High Court. But in the present case, the journey was undertaken in the year 2012 and the bills were settled during that year; meaning thereby at the relevant point of time when the bills were settled, there was no order of the Hon’ble Madras High Court and the assessee was under obligation to deduct TDS on the reimbursement of expenditure incurred by the assessee on foreign travel. In the light of these facts, we are of the considered opinion that the Revenue has rightly held the assessee to be in default, as the assessee has not deducted TDS intentionally on the reimbursement of expenditure incurred on LTC/LFC. Moreover, the ld. CIT(A) has directed the Assessing Officer to recalculate the liability of TDS at 10%. In view thereof, we reject the claim of the assessee of exemption under section 10(5) of the Act. - Decided against assessee
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