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IN THE HIGH COURT OF KERALA AT ERNAKULAM
A.Muhamed Mustaque, Harisankar V.Menon
State Bank of India – Appellant
Versus
Commissioner Of Income Tax – Respondent
| Table of Content |
|---|
| 1. context of tax deductions related to payments. (Para 1 , 2) |
| 2. arguments concerning interim orders and compliance. (Para 3 , 4 , 5 , 6) |
| 3. court's analysis of tax deduction obligations. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13) |
| 4. final judgment ruling on tax deductions according to interim orders. (Para 14) |
JUDGMENT :
Harisankar V. Menon, J.
This appeal is at the instance of the assessee - a nationalised bank - seeking to challenge the order dated 09.12.2024 in ITA No.274 of 2024 of the Income Tax Appellate Tribunal, Cochin Bench upholding the steps initiated against it under Section 201 (1) and (1A) of the Income Tax Act,1961 (hereinafter referred to as the ‘Act’) with respect to the assessment year 2016-17.
2. The appellant has been providing reimbursement of Leave Travel Concession (LTC) to its employees. Pursuant to a circular dated 15.04.2014 issued by the bank, LTC as regards overseas travel facility to the employees stood withdrawn. The circular was challenged before the Madras High Court at the instance of the association of the employees of the bank. The Madras High Court, by an order dated 25.04.2014, stayed the operation of the circular. Later, the stay order as
An appellant cannot be deemed an 'assessee in default' for tax deduction if mandated by court's interim orders.
The main legal point established in the judgment is that the employer has a statutory duty to deduct tax at source from payments made to employees as per the provisions of the Income Tax Act, 1961, a....
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