No TDS Default on LFC Payment as Bank Followed Binding HC Interim Orders

Advertisement State Bank of India Vs ITO (ITAT Mumbai) The appeals before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from orders of the Commissioner of Income Tax (Appeals) for Assessment Year 2016–17, wherein the assessee was held to be an “assessee in default” under Section 201(1) for failure to deduct tax at source on Leave Fare Concession (LFC) payments made to employees. The assessee, a banking entity, had granted LFC benefits to employees and treated such payments as exempt under Section 10(5) of the Income Tax Act while computing tax deduction under Section 192. Du...