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TMI Blog2025 (4) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and accordingly, the appeal was heard with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeal in the light of decision of Hon'ble Apex Court in assessee's own case. 2. Upon perusal of order passed u/s 201(1)/ 201(1A) by Ld. AO on 31- 03-2023, it could be seen that the assessee reimbursed LTC / LFC payments involving foreign LFC to two of its employees for Rs. 7.06 Lacs without deduction of tax at source. The details of the employees have been tabulated at para 6.1 of the order. The Ld. AO held that the said payment was not exempt u/s 10(5) whereas the assessee stated that TDS was not deducted under bona-fide belief that no TDS was required to be deducted against such payments. The Hon'ble High Court of Madras p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake, as all the relevant facts were before the Assessee employer and he was therefore, fully in a position to calculate the 'estimated income' of its employees. The contention that there may be a bona fide mistake by the assessee-employer in calculating the 'estimated income' cannot be accepted since all the relevant documents and material were before the assessee- employer at the relevant point of time and the assessee employer therefore ought to have applied his mind and deducted tax at source as it was his statutory duty u/s 192(1) of the Act. The issue thus attained finality in favor of the revenue. 4. At the same time, it could be seen that the impugned payments pertain to LFC granted by assessee bank for the period 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were binding on the assessee and had the assessee deducted tax at source on impugned payment, it would have been contrary to the orders of Hon'ble High Court which could have amounted to contempt of court order. Finally, the decision in the aforesaid case has been rendered by Hon'ble High Court on 14-06-2022. Under these circumstances, we would hold that assessee bank, by interim order of Hon'ble High Court of Madras, was under an obligation not to deduct tax at source and therefore, the assessee could not be held to be assessee-in-default for non deduction of tax at source on impugned LFC payments. We order so. The impugned demand as raised against the assessee stand deleted. 5. The appeal stand allowed in terms of our above order. Orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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