ITAT Deletes Penalty for Short TDS deduction on Leave Fare Concession

Chief Manager (Admin), State Bank of India (RBO) Vs Addl. CIT (TDS) (ITAT Agra) Income Tax Appellate Tribunal (ITAT), Agra bench, has set aside penalties imposed on the State Bank of India (SBI) for alleged short deduction of tax at source (TDS) on Leave Fare Concession (LFC) reimbursements provided to its employees. The penalties, levied under Section 271C of the Income Tax Act, 1961, for assessment years 2012-13 and 2013-14, related to reimbursements for LFC journeys that involved travel to overseas destinations en route to a final place in India. The dispute arose because the tax authoritie...