SC Leave Fare Concession Ruling: ITAT Holds Bank Liable for TDS Default

SBI Morena Tiraha Vs ITO (ITAT Agra) The issue in these appeals before the Income Tax Appellate Tribunal (ITAT), Agra Bench, concerned whether a public sector bank could be treated as an “assessee in default” under Section 201 of the Income-tax Act, 1961, for failure to deduct tax at source under Section 192 on Leave Fare Concession (LFC) payments made to employees who had undertaken journeys involving foreign travel. The consequential liability to interest under Section 201(1A) was also in dispute. The employees of the bank had availed LFC benefits and travelled to certain foreign...