Penalty u/s 271C for Non-Deduction of TDS on Foreign LTC Upheld: ITAT Chandigarh

State Bank of India Local Head Office Chandigarh Vs ACIT (TDS) (ITAT Chandigarh) ITAT upheld penalty of ₹17.23 lakh u/s 271C levied on the bank for failure to deduct TDS u/s 192 on LTC/LFC reimbursements relating to foreign travel. Tribunal noted that exemption u/s 10(5) applies only to travel within India, and the Hon’ble Supreme Court in the assessee’s own case had already clarified that foreign travel reimbursements are taxable salary. Assessee’s plea of reasonable cause based on interim High Court orders was rejected, as statutory obligation to deduct tax remained unchanged and pen...