State Bank of India Nalikul Branch Vs ITO Ward-2(2), Kolkata

Parties Involved

Facts Summary

This appeal was filed by the assessee, State Bank of India Nalikul Branch, against the order dated 06.08.2024 passed by the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2016-2017. The appeal was initially time-barred by 60 days, but the delay was condoned as the assessee provided reasonable grounds and the ld. Sr. DR did not raise serious objections. The case involves an ex-parte order by the AO dated 21.12.2023, and the assessee raised multiple grounds of appeal, primarily relying on an interim order of the Hon’ble Madras High Court dated 16.02.2015 in W.P.No.11991 of 2014, which directed that no TDS should be deducted on reimbursement of Leave Fare Concession (LFC) amounts to employees.…

Legal Issues

• 1. Whether the order of the learned CIT(A) is bad in law and contrary to the provisions of law and facts of the case.
• 2. Whether the learned CIT(A) & TDS officer erred in holding the Appellant as an assessee in default under section 201(1).
• 3. Whether the Appellant was bound by the directions of the Hon'ble High Court of Madras and whether deducting TDS would amount to contempt of court.
• 4. Whether there can be any recovery from the Appellant given the stay orders from the Hon'ble High Court of Madras.
• 5. Whether the Appellant was under a bona fide belief that no TDS was applicable on the reimbursement of the LFC paid to its employees.
• 6. Whether the Appellant ought not be regarded as an assessee in default if two views are possible.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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