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TMI Blog2022 (8) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... the re-imbursement made under Leave Fare Concession ('LTD') scheme of the State Bank of India to employees who have carried out circuitous tour, covering foreign destination was considered as part of taxable income of those employees and to ascertain whether TDS u/s 192 of the Act was duly deducted on such reimbursements. 2.1 During the proceedings, it was noticed that many of the officials of SBI have availed LFC/LTC Scheme and carried out circuitous tour which includes foreign travel, before/after reaching the destination. According to the eligibility criteria, reimbursement was made to the extent of actual tour expenses and same were claimed, to be exempt as per the provisions of expenses and same were claimed, to be exempt as per the provisions of Section 10(5) of the Act . 2.2 The Ld. AO observed that the wording and intention of the Section 10(5) and Rule 2B is explicit. The benefit of exemption under the said section is available only in case of proceeding on leave to any place in India and not for International Travel. Sh. Jagdish Chandra Joshi, AGM (Accounts and Administration) of SB1, Main Branch was asked to explain as to whether the element of reimbursement on circui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also made a reference to the interim order of the Hon'ble High Court of Madras dated 16.02.2015. It is noteworthy that the said Circular was passed consequent to the interim order whereas in this case the journey was performed by 42 no of employees in the FY 2010-11 and their bills were settled on various dated during the financial year; meaning that these bills were settled much before the interim order was passed. The assessee was under obligation to deduct TDS on the reimbursement of expenditure incurred by the employees on foreign travel. The assessee has thus intentionally did not deduct TDS on the reimbursement of expenditure incurred by the employees on foreign travel. Further, the interim stay-granted by Hon'ble High Court of Madras does not case an binding obligation in Delhi jurisdiction." 4. The Ld. CIT(A) had dismissed the appeal with following observations:- "4.1 All the grounds of appeal raised are pertaining to a demand of short deduction alongwith interest amounting to Rs. 3,04,774/- raised u/s 201(1)/201(1A). At the outset, the Ld. AR has argued that as per provisions of section 201(3), the order should have been passed within the period of two year from the end ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of the law, the Ld AO as well as Ld CIT(A) erred in raising/confirming the demand of Rs. 3,07,714/-(including interest of Rs. 1,44,015/-) by denying the exemption u/s 10(5) in respect of reimbursement of Leave Travel concession involving foreign leg through circuitous route where designated place is in India.. 3. That without prejudice to ground no. 1 and 2 above and on the facts and circumstances of the case and provisions of the law, the Ld AO as well as Ld CIT(A) erred in treating the bank as an assessee in default on account of alleged non deduction of TDS on such reimbursement towards Leave Travel Concession. 4. That consequential to our Ground no. 1, 2 & 3 above, the learned AO and Ld. CIT(A) has erred in charging/ confirming interest u/s 201(1A) of Rs. 1,44,015/-. 5. That the appellants request be allowed to add, modify and delete any other ground (s) of appeal." 6. Heard and perused the record. 7. Primarily, the contention of Ld. Counsel for the assessee is that the order of assessment passed is beyond jurisdiction of the AO on account of being passed after prescribed period of limitation. It was submitted that the appellant was served notices u/s 201(1) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01(1)/ 201(1A) of the Act were issued on 29.01.2018 while in case of ITA No. 2615/Del/2019 also the summons were issued on 20.01.2018 and notice was issued on 29.01.2018. The assessment orders u/s 201(1)/ 201(1A) of the Act have been passed on 05.03.2018. There is no doubt that Section 201(3) of the Act provides that the assessment orders under sub section 1 of Section 201 against assessee in default for failure to deduct the whole or any part of the tax from a person resident in India can be passed before expiry of two years from the end of financial year in which the payment is made. Judgment of Hon'ble Gujarat High Court in Tata Teleservices vs. Union of India (supra) relied by Ld. Counsel for appellant has held that Section 201(3) as amended by Finance Act (no. 2) of 2014 shall not be applicable retrospectively and for convenience relevant para 15 is reproduced as below:- 15. Considering the law laid down by the Hon'ble Supreme Court in the aforesaid decisions, to the facts of the case on hand and more particularly considering the fact that while amending section 201 by Finance Act, 2014, it has been specifically mentioned that the same shall be applicable w.e.f. 1/10/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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