State Bank of India Vs ACIT (Delhi High Court)
The appeal was filed by the State Bank of India against the order dated 09.07.2019 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘G’, in ITA No. 5437/Del/2016 for Assessment Year 2013-14.
Before the Tribunal, the appellant had contended that it was not liable to deduct tax at source on payments made to employees towards Leave Travel Concession (LTC) claims that did not satisfy the prescribed conditions. The appellant also submitted that, having furnished the Permanent Account Number (PAN) details of the employees, the Assessing Officer should proceed against the employees if they had failed to disclose the amounts received as taxable income and had not paid tax thereon.
Read SC Judgment in this case: TDS Liability on Ineligible LTC Claims Upheld; Appeal Dismissed: SC
The Tribunal rejected the appellant’s primary contention. It further held that, for claiming the benefit of the proviso to Section 201(1) of the Income-tax Act, it was the responsibility of the employer, being the deductor, to furnish all necessary particulars before the Assessing Officer. The Tribunal remanded the issue to the Assessing Officer for fresh adjudication after granting an opportunity of hearing to the assessee in light of its observations.
