No TDS on Foreign Travel LTC Leads to Section 271C Penalty: ITAT Chandigarh

State Bank of India Vs ACIT (TDS) (ITAT Chandigarh) The appeal before the Income Tax Appellate Tribunal (ITAT), Chandigarh arose from the order of the Commissioner of Income Tax (Appeals), NFAC, dated 11.06.2025 for Assessment Year 2016–17. The assessee challenged the confirmation of penalty amounting to ₹17,23,630 imposed under Section 271C of the Income Tax Act for failure to deduct tax at source (TDS). The assessee is a banking company responsible for deducting tax at source on salary payments under Section 192 of the Income Tax Act. During TDS verification proceedings, the Assessing Of...