TDS Liability on LTC Cannot Arise When Deduction Barred by HC Interim Orders

State Bank of India Vs ACIT (ITAT Ahmedabad) The ITAT Ahmedabad considered an appeal against an order passed by the Commissioner of Income Tax (Appeals) for Assessment Year 2016–17, wherein the Assessing Officer had disallowed exemption under Section 10(5) of the Income Tax Act due to differing interpretation of law and treated the assessee as an “assessee in default” under Sections 201(1) and 201(1A) for non-deduction of tax at source (TDS) on Leave Travel Concession (LTC) payments. The CIT(A) upheld this action. Before the Tribunal, both parties agreed that the issue was covered by an ...