STATE BANK OF INDIA BHAKTINAGAR BRANCH,RAJKOT vs. THE JOINT COMMISSIONER OF INCOME-TAX, TDS RANGE, RAJKOT, RAJKOT

ITA 852/RJT/2026Status: DisposedITAT Rajkot11 September 2026AY 2017-186 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee could not be treated as an assessee in default as it was bound to comply with the interim judicial directions of the Madras High Court. Consequently, the demand under section 201(1) and 201(1A) and the penalty under section 271C were deleted.

What were the facts?

The assessee, State Bank of India, was held to be an assessee in default for non-deduction of TDS on Leave Fare Concession (LFC) payments. The assessee contended that it was bound by interim orders of the Madras High Court which clarified that LFC payments would not amount to income for TDS purposes.

What were the issues?

Whether the assessee can be treated as an assessee in default for non-deduction of TDS when it was acting under binding interim judicial orders. Whether penalty under section 271C is sustainable if the primary default is not established.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 271C,Section 192,Section 10(5)

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Heard together (2 matters)

ITA No. 813/Rjt/2026
ITA No. 814/Rjt/2026

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण, राजकोट "यायपीठ, राजकोट । In The Income Tax Appellate Tribunal, “SMC”

Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member आयकर अपील सं./ITA No. 813/Rjt/2026 [ िनधा"रण वष" /Assessment Year: 2017-18 ] State Bank of India, ITO TDS - 2, Rajkot, RBO 3 Amreli, Room No. 605, Pratyaksh Kar बनाम/ 1st Floor Library Chowk, Bhavan, Race Course, Ring Road, Vs.

Amreli, Gujarat-365601 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./PAN/GIR No.: RKTS07171D (Appellant) (Respondent) िनधा"रती की ओर से/Appellant by : Shri Lokesh Karia, Ld. AR राज" की ओर से/Respondent by : Shri Shishir Kumar, Ld. Sr. DR आयकर अपील सं./ITA No. 814/Rjt/2026 [ "नधा"रण वष"/Assessment Year: 2016-17 ] Circle-TDS, Rajkot, Room No: Complex, Chandrashn Nagar 601, 6th Floor, Pratyaksh Kar Main Road, Near Mavdi Fire Bhavan, Race Course, Ring Road, Station, Rajkot, Gujarat-360004 Rajkot, Gujarat-360001 "ायीलेखासं./जीआइआरसं./PAN/GIR No.: AAACS8577K/RKTS05822F (अपीलाथ"/Appellant) (""यथ"/Respondent)

Appellant by : Shri Dinesh Nair, Ld. AR Respondent by : Shri Shishir Kumar, Ld. Sr. DR

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