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2024 (2) TMI 919 - AT - Income TaxBank liability to deduct TDS in respect of the LTC/LFC bills - assessee in default u/s 201(1)(1A) for non-deduction of tax under Section 192 - HELD THAT:- We have perused the order of the Hon'ble Madras High Court [2015 (2) TMI 1378 - MADRAS HIGH COURT] and observed that a writ petition was filed challenging the circular issued by the SBI to the effect that officers/employees would not be entitled to visit Overseas Countries/Centers as part of LTC /HTC. In the interim order passed by the Hon'ble Madras High Court, it has been held that any amount paid to the petitioner towards LTC/reimbursement of LTC pursuant to the impugned order would not amount to income so as to enable the bank to deduct tax at source. We further observed that the Hon'ble Madras High Court in its interim order held that if the writ petition is dismissed, the employees are liable to pay tax on the amount paid by the bank. However, recently, the Hon'ble Supreme Court in the case of the assessee STATE BANK OF INDIA VERSUS ASSISTANT COMMISSIONER OF INCOME TAX [2022 (11) TMI 426 - SUPREME COURT] affirmed the order of the Hon'ble Delhi High Court in holding that the assessee is liable to deduct tax at source on the payments made to its employees towards LTC bills. In view of the decision of the Hon'ble Supreme Court, the interim stay granted by the Hon'ble Madras High Court is of no help to the assessee bank. Thus we hold that the assessee is in default within the meaning of section 201(1)(1A) of the Act for non-deduction of tax under Section 192 of the Act on the reimbursement of LTC (Leave Travel Concession) /LFC (Leave Fare Concession) and HTC (Home Travel Concession).
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