2024 (12) TMI 1658

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....present appeal is that the assessee is a Nationalized Bank, made payments to its employees on account of Leave Travel Concession (LTC). Thereafter an information revealing that the assessee has not deducted TDS on the payments made to the employees on account of LTC has come to the knowledge of the department. Accordingly, department initiated proceedings u/s. 201(1) and 201(1A) of the Income-tax Act, 1961. During the course of proceedings, the Assessing Officer (AO) observed that the assessee has not deducted TDS in respect of the foreign travel of its employees. The AO sought reply of the assessee as to why the assessee is not liable for the interest of sec. 201(1) and 201(1A) of the Act. In response, the assessee contended that as per th....

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....ed the validity of this Circular before the Hon'ble Madras High Court in WP No. 1191 of 2014. The learned Counsel for the assessee contended that the Hon'ble Madras High Court vide its judgment dated 25th April, 2014 has categorically held that in terms of the interim order, the LTC payments were not attracting TDS provisions, and hence, the assessee has not deducted TDS on the payments made to the employees in respect of foreign travel. 5. The learned Departmental Representative appearing on behalf of the Revenue has strongly contended that the dispute now has been settled by the Hon'ble Supreme Court and hence the assessee is correctly treated the assessee in default u/s. 201 of the Income-tax Act, 1961. 6. We have heard the ri....