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1 - 3 of 3 (0.18 seconds)The Income Tax Act, 1961
M/S. Sbi Capital Markets Ltd., vs The Acit Rg-4(3)(3), on 13 January, 2023
3. Brief facts of the case are that the assessee is a nationalized public
sector bank, which is assessed to TDS having TAN CHES02510E for the
AY 16-17(FY 2015-16). The case of the assessee was selected for e-
verification regarding LTC payments made to assessee's employees. In
accordance with the same, the assessee was directed to provide details
of LTC payments [foreign travel] and reasons for non deduction of TDS
under section 192B of the Act. The reply of the assessee and details are
reproduced in page 2 & 3 of the penalty order. According to the
Assessing Officer, as it was observed from the reply, that one of the
employees of the assessee claimed LFC (leave fare concession)
amounting to ₹.1,85,452/- involving travel places outside India. The
Assessing Officer observed that the exemption under section 10(5) of the
Act is not available as the place of travelling of the said employee is not
situated in India. The Assessing Officer further observed that the Hon'ble
Supreme Court in the case of SBI v. ACIT in Civil Appeal No. 8181 of
2022) dated 04.11.2022 confirmed the view of the Assessing Officer's
stand therein, treating the employer i.e., the assessee in default for non
deducting tax source while realizing payments to its employee as leave
fare concession on foreign travel. Accordingly, the Assessing Officer
determined non deduction of tax at source under section 201 of the Act
and interest under section 201(1A) of the Act at ₹.55,645/- and ₹.53,420/-
3 I.T.A. No.1465/Chny/24
respectively vide his order dated 31.03.2023 passed under section
201/201(1A) of the Act. However, the Assessing Officer suspended
recovery proceeding till final disposal of W.A. No. 1653 of 2023 pending
on the file of the Hon'ble High Court of Madras.
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