State Bank of India and Ors. vs. ITO(TDS), Ward-3(2), Kolkata

Parties Involved

Facts Summary

The appeals were filed by the State Bank of India against the order of the Commissioner of Income-tax (Appeals) dated 22nd and 29th December 2023, which arose from orders under Section 201(1)/201(1A) of the Income-tax Act, 1961. The appeals were directed against the finding of the Commissioner of Income-tax (Appeals) confirming the action of the Income Tax Officer (TDS) holding the assessee in default for the alleged non-deduction of tax at source on the payment of Leave Fare Concession Travel to its employees undertaking travel with a foreign leg. The assessee argued that the show cause notice was issued with very short notice and that the Madras High Court had ruled in favor of the assessee on the same issue. The assessee also claimed that the employees had offered the LFC as income and paid due taxes in their individual ITRs.…

Legal Issues

• 1. Whether the assessee was rightly held in default for non-deduction of tax at source on the Leave Fare Concession Travel involving enroute foreign travel given to its employees.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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