No TDS Default Where Court Barred Deduction: Kerala HC

State Bank of India Vs CIT (Kerala High Court) The Kerala High Court considered an appeal filed by a nationalised bank challenging the Income Tax Appellate Tribunal’s order upholding proceedings initiated against it under Sections 201(1) and 201(1A) of the Income-tax Act, 1961 for Assessment Year 2016-17. The dispute related to the bank’s failure to deduct tax at source on Leave Travel Concession (LTC)/Leave Fare Concession (LFC) payments made to employees. The bank had earlier withdrawn the facility of overseas LTC through a circular dated 15.04.2014. The circular was challenged b...