STATE BANK OF INDIA BHAVNAGAR PARA BRANCH,BHAVNAGAR vs. ITO TDS WARD 1, AHMEDABAD, AHMEDABAD

ITA 453/AHD/2026Status: DisposedITAT Ahmedabad26 March 2026AY 2016-17Bench: SHRI SIDDHARTHA NAUTIYAL (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)9 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 by the interim directions of the Madras High Court, which prevented tax deduction. Therefore, the demand under Section 201(1) and interest under Section 201(1A) were deleted.

What were the facts?

The assessee, State Bank of India, did not deduct TDS on Leave Fare Concession (LFC) paid to employees, citing interim orders from the Madras High Court. The Assessing Officer treated the bank as an assessee in default for non-deduction.

What were the issues?

Whether an assessee can be held liable for non-deduction of TDS when acting in compliance with a High Court's interim order. Whether LFC involving a foreign leg is eligible for exemption under Section 10(5).

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, AHMEDABAD

Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Dinesh Nair, AR
For Respondent: Shri Sudhakar Verma, Sr. DR
Hearing: 23.03.2026Pronounced: 26.03.2026

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

Both appeals have been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals)-12, (in short “Ld. CIT(A)”), ADDL/JCIT(A)-2, Siliguri vide orders dated 12.01.2026 & 22.12.2025 passed for A.Y. 2016-17. Since common facts and issues for consideration are involved for both the appeals before us, both the appeals are being disposed by way of a common order.

2.

The assessee has taken the following grounds of appeal:

“1. The Learned Commissioner of Income-tax (Appeals) ("CIT(A)") erred in confirming the order of the Assessing Officer ("AO") holding the appellant to

The order continues below.

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