SBI Vs ITO (ITAT Jodhpur)
Summary: The Income Tax Appellate Tribunal, Jodhpur Bench, allowed all three appeals filed by State Bank of India concerning non-deduction of tax at source from Leave Travel Concession/Leave Fare Concession (LTC/LFC) reimbursements involving a foreign leg of travel. The appeals, ITA Nos. 870 and 872/Jodh/2024 for AY 2012-13 and ITA No. 52/Jodh/2025 for AY 2016-17, arose from separate orders passed by the Commissioner of Income-tax (Appeals). Since the appeals involved a common issue, they were heard together and disposed of by a common order.
In ITA No. 870/Jodh/2024, relating to AY 2012-13, the assessee-bank had reimbursed Rs.4,61,770/- towards Leave Travel Concession to an employee for a journey involving travel through Kuala Lumpur and Bangkok to Port Blair. The Assessing Officer allowed Rs.63,632/- as relating to travel within India and treated the balance Rs.3,98,138/- as taxable salary. The bank was treated as an assessee in default for failure to deduct tax under Section 192, with liability under Sections 201(1) and 201(1A) aggregating to Rs.1,49,270/-. The CIT(A) declined to condone a delay of 131 days in filing the first appeal and, without prejudice, upheld the demand on merits.
The Tribunal first considered the delay in ITA No. 870/Jodh/2024. The assessee explained that its TDS functions had been centralised from 01.04.2017 and the concerned branch did not have the login credentials for TAN JDHS09836B. The appellate order dated 21.09.2022 came to its knowledge only on 16.10.2024 when the Income Tax Officer contacted the branch regarding the outstanding demand. After access to the e-filing account was restored, the assessee immediately took steps to pursue the appellate remedy. The Tribunal found no material suggesting that the delay was deliberate, mala fide or attributable to conscious disregard of the statutory remedy. In the absence of objection from the Departmental Representative, the delay was condoned and the appeal admitted.
