Summary
- The ITAT Jaipur has ruled in favor of SBI, stating it cannot be treated as an assessee in default for not deducting TDS on LTC payments related to foreign travel for AY 2017-18.
- The Tribunal emphasized that binding judicial directions from the Madras High Court prevented the bank from deducting tax during the relevant period.
- This decision distinguishes the current case from a previous Supreme Court ruling, highlighting different factual contexts and judicial restraints.
- The outcome may significantly impact how banks handle TDS deductions on LTC payments involving foreign travel in future assessments.
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