2024 (10) TMI 243 - AT - Income Tax

Demand u/s 201(1) 201(1A) - failure to deduct tax at source (TDS) on Leave Fare Concession (LFC) - HELD THAT - AO held that the money received by an employee as LFC/LTC for travelling within the territory of India was only exempted u/s 10(5) of the Act and this exemption could not be claimed by an employee for travel outside India which had been done in these cases and; therefore the AO held that the SBI had defaulted in not deducting tax at source (TDS) from such amount claimed by its employees as LFC/LTC. AO after holding the appellant/assessee in default due to failure to deduct tax at source on LFC raised the consequential demand under section 201(1) 201(1A) of the Act. The SBI challenged the AO s order before the JCIT(A) which was dismissed. AR confessed that the issue in dispute here had already been decided in favour of the revenue by the Hon ble Supreme Court in the appellant/assessee s case 2022 (11) TMI 426 - SUPREME COURT - Therefore these appeals needed to be dismissed as such being covered matter. DR therefore was not required to argue the case. Appeals of the assessee stand dismissed.

Summary

The Appellate Tribunal ITAT DELHI dismissed both appeals of the assessee for AY 2016-17 regarding failure to deduct TDS on Leave Fare Concession (LFC). The AO found the assessee in default and raised consequential demand under section 201(1) & 201(1A) of the Income Tax Act. The issue had already been decided in favor of the revenue by the Supreme Court, leading to the dismissal of the appeals on 25th September, 2024.