Bank Cannot Be Treated as TDS Defaulter for Complying With HC Orders

State Bank of India Vs CIT (Kerala High Court) The Kerala High Court, in State Bank of India Vs CIT, allowed the appeal filed by the assessee bank and set aside the orders treating it as an “assessee in default” under Sections 201(1) and 201(1A) of the Income Tax Act, 1961, for the assessment year 2016-17. The dispute arose from the bank’s failure to deduct tax at source (TDS) on Leave Travel Concession (LTC) payments made to employees in relation to overseas travel benefits. The bank had earlier withdrawn the overseas LTC facility through a circular dated 15.04.2014. This ci...