TaxTMI 
TaxTMI 
2026 (8) TMI 555
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.... table on page 1 of the appeal order but correctly mentioned in para 1.0 as A.Y. 2016-17) dated 09.12.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal: "I. For that the order impugned passed by learned ADJL/JCIT(A)-3 Hyderabad (hereinafter referred in short Appellate Authority) is bad in law as well as on facts. II. For that the order passed by the Learned Appellate Authority is contrary to the provision of law and facts and without appreciating the facts and order passed by the Hon'ble High Court and Hon'ble Supreme Court. III. For that the Learned Appellate Authority erred in holding that appellate as assesses is default under section 201(1) of Income Tax ....
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....appellant bank challenged the order dated 8.6.2023 passed by Hon'ble High court of Madras passed in W.A.No.1653 of 2022 before the Hon'ble Supreme Court is SLP No.16734 of 2023 which is still pending. X. For that the observation of the appellate authority is that from 24.6.2022 to 8.8.2022 and from 8.6.2023 to 28.8.2023 there was not stay of any court, so the appellant is liable able to deduct TDS on LTC is completely ignorance of judicial mind. XI. For that the appellate authority failed to appreciate that if any appeal is filed before the Higher court that is continuation of appeal/ proceeding there is no interregnum because any order passed by the Hon'ble High Court merged with order of Hon'ble Supreme C....
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....preme Court in the case of State Bank of India vs. CIT, Civil Appeal No. 8181 of 2022, dated 04.11.2022, LTC involving a foreign leg does not fall within the ambit of section 10(5) of the Act, rendering such reimbursements liable for tax deduction at source. The Ld. Addl/JCIT(A) further directed that any recovery action must be taken only after duly considering the decision of the Hon'ble Supreme Court in SLP No. 16734/2023, and instructed the assessee to file the computation of income and TDS rates applicable to each employee separately so the Ld. AO may rectify the order and reduce excess demands, if any. Accordingly, the Ld. Addl/JCIT(A) confirmed the action of the Ld. AO and dismissed the appeal of the assessee. 4. Aggrieved with....
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....e other two grounds, on the basis of which the Ld. Judge passed the order impugned in that appeal. It was further submitted that the SLP No. 16734/2023 dated 27.02.2024 is pending before the Hon'ble Supreme Court against the order dated 08.06.2023 of the Hon'ble High Court. It was requested by the Ld. AR that the matter may be remanded to Ld. AO to decide the issue as per the final outcome of the SLP pending before the Hon'ble Supreme Court. 6. We have considered the submissions made, gone through the facts of the case and perused the record and the order of the Ld. Addl/JCIT(A). However, we find that the issue has already been decided against the employees by an order of the Hon'ble Supreme Court in the case of State Bank of....
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....ion (LTC) is for travel within India, from one place in India to another place in India. There should be no ambiguity on this. [Para 13] * The second argument urged by the appellant that payments made to these employees was of the shortest route of their actual travel cannot be accepted either. It has already been clarified above, that in view of the provisions of the Act, the moment employees undertake travel with a foreign leg, it is not a travel within India and hence not covered under the provisions of section 10(5). [Para 14] * A foreign travel also frustrates the basic purpose of LTC. The basic objective of the LTC scheme was to familiarise a civil servant or a Government employee to gain some perspective of Indian c....
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....the 'estimated income' of its employees. The contention of the assessee that there may be a bona fide mistake by it in calculating the 'estimated income' cannot be accepted since all the relevant documents and material were before the assessee-employer at the relevant time and the assessee employer therefore ought to have applied his mind and deducted tax at source as it was his statutory duty, under section 192(1). [Para 16] {emphasis supplied} * In conclusion no reason is found to interfere with the order passed by the Delhi High Court. The appeal is dismissed. [Para 17]" 7. A perusal of the decision of the Hon'ble Supreme Court shows that the order of the Hon'ble Delhi High Court was affirmed and the a....