आयकर अपीलीय अिधकरण, ’ए’ (cid:586)ायपीठ, चे(cid:580)ई IN THE INCOME-TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ঒ी एस.एस. िव(cid:695)नेআ रिव, (cid:586)ाियक सद(cid:735) एवं ঒ी जगदीश, लेखा सद(cid:735) के सम঴ ।

Before Shri S.S. Viswanethra Ravi, Judicial Member &

Shri Jagadish, Accountant Member आयकर अपील सं./I.T.A. No.1465/Chny/2024 िनधा१रण वष१/Assessment Year: 2015-16 State Bank of India Vs. The Assistant Commissioner of Industrial Finance Branch, Income Tax, 103, Mount Road, Chennai 600 002. TDS Circle 3(1), [TAN:CHES02510E] Chennai.

(अपीलाथ५/Appellant) (ঋ(cid:529)थ५/Respondent)

अपीलाथ५ की ओर से / Appellant by : Ms. G. Vardini Karthik, Advocate (virtual)

ঋ(cid:529)थ५ की ओर से/Respondent by : Shri N. Madan Kumar, JCIT सुनवाई की तारीख/ Date of hearing : 02.04.2025 घोषणा की तारीख /Date of Pronouncement : 27.06.2025 आदेश /O R D E R PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

This appeal filed by the assessee is directed against the order dated 21.03.2024 passed by the Addl/JCIT(1)-1, Coimbatore for the assessment year 2015-16.

2. The assessee raised 17 grounds of appeal, amongst which, the only issue emanates for our consideration as to whether the ld. CIT(A) is justified in confirming the order passed under section 201/201(1A) of the Income Tax Act, 1961 [“Act” in short] in the facts and circumstances of the case.

3. Brief facts of the case are that the assessee is a nationalized public sector bank, which is assessed to TDS having TAN CHES02510E for the AY 16-17(FY 2015-16). The case of the assessee was selected for e- verification regarding LTC payments made to assessee’s employees. In accordance with the same, the assessee was directed to provide details of LTC payments [foreign travel] and reasons for non deduction of TDS under section 192B of the Act. The reply of the assessee and details are reproduced in page 2 & 3 of the penalty order. According to the Assessing Officer, as it was observed from the reply, that one of the employees of the assessee claimed LFC (leave fare concession) amounting to ₹.1,85,452/- involving travel places outside India. The Assessing Officer observed that the exemption under section 10(5) of the Act is not available as the place of travelling of the said employee is not situated in India. The Assessing Officer further observed that the Hon’ble Supreme Court in the case of SBI v. ACIT in Civil Appeal No. 8181 of 2022) dated 04.11.2022 confirmed the view of the Assessing Officer’s stand therein, treating the employer i.e., the assessee in default for non deducting tax source while realizing payments to its employee as leave fare concession on foreign travel. Accordingly, the Assessing Officer determined non deduction of tax at source under section 201 of the Act and interest under section 201(1A) of the Act at ₹.55,645/- and ₹.53,420/-

respectively vide his order dated 31.03.2023 passed under section 201/201(1A) of the Act. However, the Assessing Officer suspended recovery proceeding till final disposal of W.A. No. 1653 of 2023 pending on the file of the Hon’ble High Court of Madras.

4. Aggrieved by the order of the Assessing Officer under section 201/201(1A) of the Act, the assessee preferred an appeal before the ld. CIT(A). According to the ld. CIT(A), some assessees filed detailed reply and some filed no reply. The ld. CIT(A) reproduced the submissions of some assessees from para 5.3 to 5.7 of the impugned order. The ld. CIT(A), vide para 5.8 of the impugned order, observed that the issue, i.e., the receipt from LTC on foreign tour are taxable and the employer State Bank of India is liable to deduct TDS has reached a finality. The sequence of events and position after 24.06.2022 is discussed in para 5.10 of the impugned order. The ld. CIT(A) was of the opinion that the assessee was liable to deduct TDS on LTC/LFC from 08.06.2023 to 28.08.2023 in accordance with the law laid down by the Hon’ble Supreme Court vide order dated 04.11.2022. Having observed so, the ld. CIT(A) held the order of the Assessing Office