https://www.taxtmi.com/caselaws?id=796886 An assessee-bank that made foreign-travel LFC/LTC payments while a High Court interim direction prohibited tax deduction at source could not be treated as an assessee in default. The operative direction treated such payments or reimbursements as non-income for TDS purposes and placed any eventual tax liability on employees if the writ petition failed. Compliance was binding on the bank, while contrary deduction could have exposed it to contempt. Subsequent disposal of the writ proceedings did not retrospectively create a TDS default. Consequently, the tax demand and interest for non-deduction were inapplicable and liable to be cancelled. en-us Wed, 05 Aug 2026 00:00:00 +0530 Wed, 12 Aug 2026 08:20:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796886 An assessee-bank that made foreign-travel LFC/LTC payments while a High Court interim direction prohibited tax deduction at source could not be treated as an assessee in default. The operative direction treated such payments or reimbursements as non-income for TDS purposes and placed any eventual tax liability on employees if the writ petition failed. Compliance was binding on the bank, while contrary deduction could have exposed it to contempt. Subsequent disposal of the writ proceedings did not retrospectively create a TDS default. Consequently, the tax demand and interest for non-deduction were inapplicable and liable to be cancelled. Case-Laws Income Tax Wed, 05 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796886