SBI Wins LTC TDS Dispute: No Assessee-in-Default When Bank Followed High Court Orders

State Bank of India Vs ITO (ITAT Ahmedabad) SBI Wins LTC TDS Dispute: No Assessee-in-Default When Bank Followed High Court Orders The Ahmedabad ITAT held that State Bank of India could not be treated as an “assessee in default” under sections 201(1) and 201(1A) for not deducting TDS on Leave Travel Concession (LTC/LFC) reimbursements involving foreign travel. The Tribunal noted that during the relevant period, SBI was bound by interim directions of the Madras High Court, which had specifically directed that LTC reimbursements would not be treated as income and that no tax was to be deducte...