State Bank of India vs. Income Tax Officer (TDS), Karnal

Parties Involved

Facts Summary

The assessee, State Bank of India, had employees who availed the Leave Fare Concession (LFC)/LTC facility and traveled to foreign countries. The Assessing Officer (AO) found that the money received by an employee as LFC/LTC for traveling within the territory of India was only exempted under Section 10(5) of the Act and this exemption could not be claimed by an employee for travel outside India. Consequently, the AO held that the SBI had defaulted in not deducting tax at source (TDS) from such amount claimed by its employees as LFC/LTC. The SBI challenged the AO's order before the JCIT(A), which was dismissed.…

Legal Issues

• 1. Whether the JCIT(A) is justified in upholding the finding of the Assessing Officer that the assessee was in default due to failure to deduct tax at source (TDS) on Leave Fare Concession (LFC) and the consequential orders passed under section 201(1) & 201(1A) of the Income Tax Act, 1961 were justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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