STATE BANK OF INDIA vs ASSISTANT COMMISSIONER OF INCOME TAX

The Supreme Court upheld the decision of the Delhi High Court which affirmed the Income Tax Appellate Tribunal's ruling that the State Bank of India was in default for not deducting TDS on Leave Travel Concession payments to its employees. The court reasoned that the employees' travel included a foreign leg and did not comply with the statutory requirements for LTC, which mandates travel solely within India. Consequently, the payments made were deemed taxable, necessitating TDS deductions.