State Bank of India Vs ACIT (Supreme Court of India)
The Supreme Court granted leave and dismissed the appeal filed by the State Bank of India against the order dated 09.07.2019 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘G’, in ITA No. 5437/Del/2016 for Assessment Year 2013-14. All pending applications were also disposed of.
Read HC Judgment in this case: Employer Liable for TDS on Ineligible LTC Claims: Delhi HC
Before the Tribunal, the appellant had contended that it was not liable to deduct tax at source on payments made to its employees towards Leave Travel Concession (LTC) claims that did not satisfy the prescribed conditions. The appellant also argued that, having furnished the PAN details of the employees, the Assessing Officer should proceed against the employees if they had failed to disclose the amounts received as taxable income and had not paid tax thereon.
The Tribunal rejected these submissions. It held that, for claiming the benefit of the proviso to Section 201(1) of the Income-tax Act, it was the responsibility of the employer, being the deductor, to furnish all necessary particulars before the Assessing Officer. The Tribunal remanded the issue to the Assessing Officer for fresh adjudication after providing an opportunity of hearing to the assessee.
