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State Bank Of India v. Add. CIT (2020)78 ITR 636 ( Bang) (Trib)/State Bank of India v .Add. CIT (2020) 80 ITR 11 (SN)(Bang) (Trib)

S. 271C : Penalty – Failure to deduct at source -Leave travel allowance – Reasonable cause -Penalty not warranted[ S. 10 (5) , 133A ,273B ]

Tribunal held that while calculating the estimated tax liability of its employees, the assessee always considered leave travel concession claim as exempt under section 10(5) and the same position, being followed and accepted consistently in the past years, was followed in the current financial year as well. However, for the first time, after the survey by the Department, this issue arose for consideration and after the judgment of the Tribunal, the matter got clarified and the assessee had duly complied and deposited the outstanding demand along with interest and had taken corrective steps in subsequent years as well. There was reasonable cause in terms of section 273B for not deducting tax by the assessee and the penalty levied under section 271C was deleted.( AY.2011-12 to 2013-14) 

(AY. 2012 -13)