Allowing the appeal of the assessee, the Tribunal held that the Bank has not deducted the tax at source in respect of leave travel concession granted to employees in respect of foreign travel under the bonafide belief that there was no bar on travel to foreign destination. There being a reasonable cause in terms of S.273B for not deducting tax at source, levy of penalty was deleted. (AY. 2012-13)
State Bank of India v. ACIT (2019) 174 ITD 551/ 197 TTJ 989 (Jaipur)(Trib.)
S. 271C : Penalty-Failure to deduct at source-leave travel concession- Foreign travel–Bona fide belief that there was no bar on travel to a foreign destination during course of travel to a place in India -Levy of penalty is held to be not justified. [S. 10(5), 192, 273B]