2022 (7) TMI 1323 - SCH - Income Tax

Supreme Court reserves order after arguments, case listed post related case order.

STATE BANK OF INDIA Versus ASSISTANT COMMISSIONER OF INCOME TAX

The Supreme Court reserved its order after hearing arguments from both parties, with the case being listed following a related case's order pronouncement. ... TDS on Leave Travel Concession - assessee in default u/s 201(1) - as per HC The amounts received by the employees of the appellant-assessee towards reimbursement of LTC claims are therefore not liable to exemption and, consequently, the appellant is liable to deduct tax at source in respect of payments made by it to its employees. Since the appellant had not deducted tax on the entire amount paid and deducted tax only in respect of part of the amount paid as per its own understanding, the finding that the appellant was an assessee in default, in our view, is completely justified. The Tribunal was also correct in its view that it was the primary obligation of the appellant being the deductor, to establish that the recipients had disclosed the amounts received by them towards LTC claims as part of their taxable income and paid tax thereon - HELD THAT:- Arguments concluded. Order reserved. TDS u/s 192 - Exemption u/s 10(5) read with Rule 2B of the Income Tax Rules, 1962 - liability under Sections 201[1] and 201[1A] - appellant - Bank provides benefit of leave travel concession (‘LTC’ for short) to its employees and while deducting TDS from the salary of the employees - reimbursement of leave travel expenses as claimed by the employee of the Appellant - HELD THAT:- List after pronouncement of order in State Bank Of India Vs. Assistant Commissioner Of Income Tax [2022 (7) TMI 1323 - SC ORDER] The Supreme Court heard arguments from both the petitioner and the respondent. The order was reserved. The case is listed after the pronouncement of an order in another related case.