Bank Liable for TDS Default on LFC Payments as Foreign Travel Is Not Exempt

State Bank of India Vs ITO (ITAT Agra) In State Bank of India Vs ITO, the Agra ITAT considered whether the assessee bank could be treated as an “assessee in default” under Section 201 of the Income Tax Act for failure to deduct tax at source on Leave Fare Concession (LFC) payments made to employees who undertook foreign travel during their LTC journeys. The Assessing Officer had passed an order under Sections 201(1) and 201(1A) treating the bank as an assessee in default and levying consequential interest. The Tribunal noted that employees of the bank had availed LFC and travelled to forei...