Court allows exemption application & grants condonation of delay. Upholds liability for TDS deduction outside LTC scheme.

The court allowed the exemption application subject to all just exceptions, and the application was disposed of. Another application seeking condonation of a 30-day delay in re-filing was also granted. In the appeal filed by State Bank of India concerning LTC claims and TDS deduction, the court upheld the Tribunal's decision that the bank was liable to deduct tax at source for payments made outside the LTC scheme parameters. The court concluded that no substantial question of law arose and dismissed the appeal by State Bank of India.

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Issues:
1. Exemption application - delay condonation.
2. Appeal by State Bank of India against ITAT order on LTC claims and TDS deduction.

Exemption Application - Delay Condonation:
The court allowed the exemption application subject to all just exceptions, and the application was disposed of. Another application sought condonation of a 30-day delay in re-filing, which was condoned, leading to the disposal of the application.

State Bank of India Appeal - LTC Claims and TDS Deduction:
The appeal was filed by State Bank of India against the ITAT order dated 09.07.2019 concerning the Assessment Year 2013-14. The Tribunal rejected the bank's primary submission that it was not liable to deduct tax at source for payments made to employees for LTC claims outside the scheme parameters. The Tribunal also dismissed the bank's argument that providing PAN details of employees should absolve them from TDS liability. The Tribunal remanded the issue to the AO for re-adjudication after hearing the assessee.

The bank claimed to have deducted tax at source for LTC claims not falling within the scheme, such as foreign travel destinations like Port Blair via Malaysia, Singapore, etc. However, the court found that such journeys did not qualify for LTC claims, as they must be within India and by the shortest route. Consequently, the bank was held liable to deduct tax at source for these payments. The court upheld the Tribunal's decision that the bank, as the deductor, had the obligation to ensure tax compliance by employees receiving LTC reimbursements.

The court concluded that no substantial question of law arose for consideration and dismissed the appeal filed by State Bank of India.

This detailed analysis of the judgment covers the issues of exemption application delay condonation and the appeal by State Bank of India regarding LTC claims and TDS deduction comprehensively.

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