ACIT Vs State Bank of India (ITAT Delhi)
ITAT Delhi held that TDS is required to be deducted under section 192 of the Income Tax Act on the reimbursement of LTC (Leave Travel Concession) /LFC (Leave Fare Concession) and HTC (Home Travel Concession).
Facts- Issue involved in the present appeal of the Revenue is whether TDS is liable to be deducted on the LTC paid to employees.
Conclusion- Held that Hon’ble Supreme Court in the case of the assessee in Civil Appeal No.8181 of 2022 arising out of SLP(C) No.. 9876 of 2020 dated -4.11.2022 affirmed the order of the Hon’ble Delhi High Court in holding that the assessee is liable to deduct tax at source on the payments made to its employees towards LTC bills. In view of the decision of the Hon’ble Supreme Court, the interim stay granted by the Hon’ble Madras High Court is of no help to the assessee bank. Thus, respectfully following the decision of the Hon’ble Supreme Court, we hold that the assessee is in default within the meaning of section 201(1)(1A) of the Act for non-deduction of tax under Section 192 of the Act on the reimbursement of LTC (Leave Travel Concession) /LFC (Leave Fare Concession) and HTC (Home Travel Concession).
FULL TEXT OF THE ORDER OF ITAT DELHI
