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2022 (7) TMI 291 - HC - Income TaxBenefit of LTC/HTC to cover foreign travel - TDS liability - Leave Travel Concessions to the officers of the Public Sector Undertakings - HELD THAT:- Regarding the submission of the Income Tax Department, no doubt, the provisions of the Act are to be applied scrupulously. Under Section 10(5) of the Income Tax Act, Travel Concession within India alone is exempted. The Travel Concession, if extended to other countries, then the exemption Clause cannot be applied and the persons are liable to pay tax under the said provision. Thus, the Income Tax Department is empowered to invoke the provisions, if the Travel Concession is extended to abroad and in all such cases, they are liable to deduct TDS as applicable and by following the procedures as contemplated under the Income Tax Act. When the Government of India specifically passed a memorandum that the Leave Travel Concessions to the officers of the Public Sector Undertakings and others to be restricted on par with the Government of India scheme, then there is a context and meaning with reference to certain foreign affairs and therefore, there is no infirmity in respect of the order impugned passed by the respondents in cancelling the concession extended to travel abroad under Leave Travel Concession facility. Rule 44 of the State Bank of India Officers Service Rules, 1992, regarding Leave Travel Concession and Leave Encashment are comprehensive and provides the procedures, definitions etc., The said Rule alone would have the Statutory enforceability. Government of India Memorandum dated 30.04.2014 states that the Public Sector Banks have to adopt the LTC scheme of the Government of India. The letter itself reveals that there are certain reasons and implications in respect of allowing such Bank officials to travel abroad under the LTC scheme as it relates to External Affairs of the country. The said Circular of the Government of India was implemented by the Indian Bank Association and based on the said decision, the State Bank of India also issued the Circular, withdrawing the facility to the officers to travel abroad. Thus, the Government of India policy regarding the Leave Travel Concession to the officers of the Public Sector Banks also to be followed in the interest of public. The instructions earlier issued to facilitate the officers of the Bank to get reimbursement for foreign travel, which is not in consonance with Rule 44 of the State Bank of India Officers Service Rules, 1992 cannot be therefore, construed as an absolute right conferred on the officers of the State Bank of India nor there is a bipartite agreement or settlement exists between the parties. Thus, there is no infringement of service rights or violation of service conditions, as there is no withdrawal of benefit conferred to the officers of the State Bank of India under Rule 44 of the State Bank of India Officers Service Rules, 1992. The concession and the facility extended to get reimbursement of the foreign travel expenses, was given by way of an additional facility through a letter and such letter was cancelled and the facility was withdrawn pursuant to the orders of the Government of India, Ministry of Finance and the Circular issued by the Indian Bank Association. The policy of the Government of India, Ministry of Finance is to be followed in the interest of public by all the Public Sector Banks, which was adopted by the Indian Bank Association. This being the factum established, there is no further scope for any discussion or negotiation with the officers of the State Bank of India as the withdrawal of such additional facility would not infringe the service rights or result in violation of service conditions of the officers of the State Bank of India. Providing an opportunity in such circumstances is a futile exercise and furthermore, the officers of the Bank are not prejudiced nor their service rights are violated. The executive actions regarding the foreign affairs should be viewed with greater latitude and the decision being taken by the State Bank of India is pursuant to the Government of India policy, which was adopted by Indian Bank Association. Thus, this Court do not find any perversity or infirmity in respect of the decision taken by the State Bank of India based on the policy decision of the Government of India, which was adopted by the Indian Bank Association.
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