SBI Loses LTC Battle – No TDS Relief on Foreign Travel Claims: Karnataka HC

State Bank of India Vs DCIT (TDS) (Karnataka High Court) In this case before the Karnataka High Court, State Bank of India filed an appeal u/s 260A challenging the order of the ITAT which had upheld demands raised under Sections 201(1) & 201(1A). The matter arose from a survey conducted u/s 133A at the Bank’s local head office on 26.12.2013, during which it was found that the Bank had reimbursed Leave Travel Concession (LTC) claims to its employees who had undertaken journeys that included foreign travel. AO held that such reimbursements did not qualify for exemption u/s 10(5), which spe...