“interest under section 234A”

InterestSection 234ASection 234A1,249 judgments

The decision most relied on for interest under section 234A is CIT v. Anjum M.H. Ghaswala (252 ITR 1), cited in 452 judgments on BharatTax.

Leading authorities on interest under section 234A

CIT v. Anjum M.H. Ghaswala

252 ITR 1 · 2001 · Supreme Court

452

citing judgments

Levy of interest under sections 234A, 234B, and 234C of the Income Tax Act is mandatory. Tax statutes are to be interpreted strictly, allowing no room for purposive interpretation.

Challapalli Sugars Ltd. v. CIT

98 ITR 167 · 1975 · Supreme Court

185

citing judgments

Interest on borrowed capital utilized for acquiring a capital asset is capitalized until business commences. Once business is set up, this interest is deductible under section 36(1)(iii) even if the asset has not yet been put to use, accepting commercial accounting standards in the absence of contrary statutory provisions.

Karanvir Singh Gossal v. CIT

349 ITR 692 · 2012 · Supreme Court

158

citing judgments

The Supreme Court's decision establishes principles or grounds for seeking a waiver of mandatory interest levied under Sections 234A, 234B, and 234C of the Income Tax Act, 1961.

CIT v. Patni Computer Systems Ltd.

215 Taxmann 108 · 2013 · High Court

citing judgments

The provision of an extended credit period or non-charging of interest on delayed receivables from associated enterprises constitutes an international transaction under Section 92B(1) and requires separate benchmarking at arm's length, even retrospectively due to the Finance Act, 2012 amendment.

Smt. Renuka Philip v. ITO

409 ITR 567 · 2018 · High Court

citing judgments

Revisionary jurisdiction under Section 263 of the Income-tax Act is barred if the issue in question is already pending appeal before the Commissioner (Appeals), as per Explanation 1(c) to Section 263.

DIT v. Mitshubishi Corporation

130 Taxmann.com 276 · 2021 · Supreme Court

citing judgments

The Supreme Court's decision in DIT Vs. Mitshubishi Corporation covers the chargeability of interest under section 234B of the Act.

Punjab Stainless Steel Inds v. CIT

324 ITR 396 · 2010 · High Court

citing judgments

This case establishes that merely having sufficient interest-free own funds does not automatically prevent interest disallowance on interest-free advances; the assessee must affirmatively prove the business or commercial expediency of such advances.

Dr. Prannoy Roy v. Commissioner of Income-tax

254 ITR 755 · 2002 · High Court

citing judgments

Interest under Section 234A cannot be charged when tax has been paid, even if the return of income is filed belatedly, as such interest is compensatory and not penal in nature and only applies if there is a loss caused to the revenue.

Judgments citing interest under section 234A

Msc Agency (India) Private Limited, Mumbai vs. ACIT, Cir-2(2)(2), Mumbai

In the result, this appeal filed by the assessee is partly allowed for statistical purpose

ITA 927/MUM/2024[2017-18]Status: DisposedITAT Mumbai31 Dec 2024AY 2017-18

Bench: Shri Om Prakash Kant, Am & Ms. Kavitha Rajagopal, Jm

For Respondent: Shri R. R. Makwana

Section 143(1)Section 143(2)Section 143(3)Section 250Section 270ASection 37(1)

circumstances of the case and in law, the NFAC erred in upholding the action of the learned AO for levy of interest under section 234A of the IT Act amounting to Rs. 20,23,482 without appreciating the fact that the return of income for the impugned AY was filed ... date prescribed under section 139(1) of the IT Act. 4.2 The Appellant prays that the learned AO be directed to delete the interest under section 234A of IT Act. MSC Agency (India) Private Limited vs. ACIT 5- Ground no. 5 5.1 On the facts and in the circumstances

Renita Christopher Dias, Vasai West vs. Assessing Officer - Ward 4(3) Thane, Thane

In the result, the appeal is hereby allowed for statistical purposes

ITA 5787/MUM/2024[2017-18]Status: DisposedITAT Mumbai31 Dec 2024AY 2017-18

Bench: Shri Anikesh Banerjee & Shri Prabhash Shankarrenita Christopher Dias V/S. Assessing Officer - Ward 4(3) Miracle Villa Near New बनाम Thane, Room No. 14, A Wing, Green Park Society, Ashar It Park, 6Th Floor, Wagle Karkhun Bhat, Papady – Industrial Estate, Thane – 401 207, Maharashtra 400 604, Maharashtra स्थायी लेखा सं./जीआइआर सं./ Pan/Gir No: Clvpd5679Q Appellant/अपीलार्थी .. Respondent/प्रतिवादी

For Appellant: Mr. Rahim RajwaniFor Respondent: Shri Balasaheb Nagve (Sr. DR)

Section 143(2)Section 143(3)Section 2(24)Section 234ASection 250Section 271ASection 69

Assessing Officer has erred in imposing and the Ld. Commissioner of Income -tax (Appeals) has erred in confirming imposition and calculation of interest under section 234A, 234B and 234C of the Act. 5. That Ld. Assessing Officer has erred in initiating penalty proceedings under section 271AAC

Deputy Commissioner of Income Tax, Central Circle-II, Noida vs. Pacific Mining Products Pvt. Ltd., Delhi

Appeal is allowed for statistical purposes”

ITA 1983/DEL/2024[2012-13]Status: DisposedITAT Delhi27 Dec 2024AY 2012-13

Bench: Shri S Rifaur Rahman & Shri Sudhir Kumarita No.1983/Del/2024 Assessment Year- 2012-13 Ita No.1984/Del/2024 Assessment Year- 2013-14 Ita No.1985/Del/2024 Assessment Year- 2014-15 Ita No.1986/Del/2024 Assessment Year- 2015-16

For Appellant: N o n eFor Respondent: Shri Sumer Singh Meena, CIT DR

year 2014-15 and Rs.1,83,19,380/- for assessment year 2015-16 under Section 153C r.w.s 144 of the Act. Tax and interest under Section 234A, 2340, 2340 & 234D of the Act was charged accordingly. Aggrieved with the order of the Assessing Officer, the assessee company has filed

Anant Ramrao Chavan, Amravati vs. Income Tax Officer, Ward-1, Amravati

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 476/NAG/2024[2014-15]Status: DisposedITAT Nagpur26 Dec 2024AY 2014-15

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: NoneFor Respondent: Shri Abhay Y. Marathe

Section 143(3)Section 147Section 234ASection 250

appellant prays that the delay be condoned and appeal should be taken up for hearing. 7. The assessee denies liability to pay interest under section 234A, 234B and 234C of I.T. Act 1961. Without prejudice, levy of interest under section 234A, 234C and 234C of I.T. Act 1961 is unjustified

Abhay Devichand Chaudhary, Akola, Maharashtra vs. ITO Ward - 1, Akola, Maharashtra

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 464/NAG/2024[2014-15]Status: DisposedITAT Nagpur26 Dec 2024AY 2014-15

Bench: Shri V. Durga Rao

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Abhay Y. Marathe

Section 143(2)Section 148Section 234ASection 250Section 69A

after submission of return of income ought to have determined income as shown in return. 9. The assessee denies liability to pay interest under section 234A, 234B and 234C of I.T. Act 1961. Without prejudice, levy of interest under section 234A, 234C and 234C of I.T. Act 1961 is unjustified

Manoj Kumar Ekambaram Arcot, Bangalore vs. Assistant Commissioner of Income Tax, Circle-3(3)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 1730/BANG/2024[2015-16]Status: DisposedITAT Bangalore26 Dec 2024AY 2015-16

Bench: Shri Laxmi Prasad Sahu & Shri Soundararajan K.Assessment Year : 2015-16

For Appellant: Shri Ravishankar .S.V, AdvocateFor Respondent: Shri Subramanian .S, JCIT-DR

Section 234ASection 54Section 54B

facts and circumstances of the case. Page 3 of 5 5. The appellant denies the liability to pay interest under section 234A, 234B and 234C of the Act in view of the fact that there is no liability to additional tax as determined by the learned Assessing Officer. Without prejudice

Sant Tukdoji Nagri Shahkari Pat Sanstha Limited, Hinganghat vs. ITO Ward - 2, Wardha

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 356/NAG/2024[2020-21]Status: DisposedITAT Nagpur20 Dec 2024AY 2020-21

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Abhay Y. Marathe

Section 144Section 234ASection 80P(2)(a)Section 80P(4)

thus addition made is unjustified and bad in law. 9. The assessee denies liability to pay interest under section 234A, 234B and 234C of I.T. Act 1961. Without prejudice, levy of interest under section 234A, 234C and 234C of I.T. Act 1961 is unjustified, unwarranted and excessive. 10. Any other

Shri Vilasrao Deshmukh Shikshan Prasarak Va Bahudeshiya S Buldana, Buldhana vs. Income Tax Officer, Ward-2(Exemption), Nagpur

In the result, appeal filed by the assessee is allowed for statistical purposes

ITA 333/NAG/2024[2015-16]Status: DisposedITAT Nagpur20 Dec 2024AY 2015-16

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Abhay Y. Marathe

Section 10Section 11Section 12ASection 143(2)Section 144Section 148Section 234ASection 249(4)Section 250

Government and assessee eligible for exemption u/s 10(23C) (iiiab) of I.T. Act 1961. 15. The assessee denies liability to pay interest under section 234A, 234B and 234C of I.T. Act 1961. Without prejudice, levy of interest under section 234A, 234C and 234C of I.T. Act 1961 is unjustified, unwarranted

Utkarsh Nagpur Z P Prathmik Shikshak Pat Sanstha Maryadit, Nagpur vs. Income Tax Officer, Ward 4(4), Nagpur

In the result, appeal filed by the assessee is allowed

ITA 126/NAG/2024[2020-21]Status: DisposedITAT Nagpur20 Dec 2024AY 2020-21

Bench: Shri V. Durga Rao

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Abhay Y. Marathe

Section 143(1)Section 143(3)Section 144BSection 234ASection 80PSection 80P(2)Section 80P(2)(a)Section 80P(2)(d)

Banks being Co-operative Societies is allowable deduction u/s 80P(2)(d) of I.T. ACI 1961. 5. The assessee denies liability to pay interest under section 234A 2348 and 234C of IT Act 1961 Without prejudice, levy of interest under section 234A, 2348 and 234C

Cummins Generator Technologies India Private Limited, Pune vs. The Assessment Unit, Income Tax Department, NFAC and the ACIT, Circle 1(1), Pune

In the result, appeal of the assessee is partly allowed

ITA 1641/PUN/2024[2020-21]Status: DisposedITAT Pune19 Dec 2024AY 2020-21

Bench: Dr.Dipak P. Ripote & Shri Vinay Bhamoreआयकर अपीलसं. / Ita No.1641/Pun/2024 िनधा"रण वष" / Assessment Year: 2020-21 Cummins Generator V The Assessment Unit, Technologies India Pvt. Ltd., S Income Tax Department, Tower A, 6Th Floor, Cummins Nfac & The Acit, India Offie Campus, Balewadi, Circle-1(1), Pune. Pune – 411045. Pan: Aabcc1533E Appellant/ Assessee Respondent / Revenue Assessee By Shri Ketan Ved – Ar Revenue By Shir Prakash L Pathade – Cit(Dr) Date Of Hearing 05/12/2024 Date Of Pronouncement 19/12/2024 आदेश/ Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Against The Order Of Assessing Officer Passed Under Section 143(3) R.W.S. 144C(13) Read With Section 144B Of The Income Tax Act, 1961 Dated 07.06.2024; To Give Effect To The Order Of Dispute Resolution Panel Dated 18.05.2024. The Grounds Of Appeal Raised By The Assessee Are As Under : “1. Ground For Not Following The Directions Of The Hon'Ble Dispute Resolution Panel (Hereinafter Referred To As "Drp")

Section 143(3)Section 144BSection 92C

Rs.3,29,56,988/-. Accordingly, Ground No.1.2 and 2 raised by Assessee are allowed. 6. The Ground No.9 and 10 are related to interest under section 234A and 234C of the Act. These are consequential grounds. Ld.AR had admitted that these grounds become academic in 6 nature, once the addition

Aditi Gupta, Ludhiana vs. DDIT, CPC, Bengaluru

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 567/CHANDI/2024[2022-23]Status: DisposedITAT Chandigarh18 Dec 2024AY 2022-23

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Satish Gupta, AdvocateFor Respondent: Shri Vivek Vardhan, JCIT, Sr. DR

Section 139(5)Section 234A

refund of Rs. 47,070/- claimed in the revised return of income, creating an additional demand of Rs. 20,350/- including levy of interest under Section 234A, 234B and 234C of the Act. 2. During the course of hearing, the Ld. AR submitted that the assessee filed the original return

Dipikaben Alpeshkumar Patel Legal Heir of Late Alpeshkumar Jagdishbhai Patel, Anand vs. The Income Tax Officer, Ward-1, Anand

In the result, the appeal of the assessee is allowed

ITA 1687/AHD/2024[2013-14]Status: DisposedITAT Ahmedabad18 Dec 2024AY 2013-14

Bench: Dr. Brr Kumar & Shri Siddhartha Nautiyal

For Appellant: Ms. Arti N Shah, A.RFor Respondent: Shri V. K. Mangla, Sr. D.R

Section 142(1)Section 144Section 148Section 234ASection 69A

learned Assessing Officer. 2. The Hon’ble CIT-A has erred in the law and facts of the case by confirming charging of interest under section 234A and 234B amounting to Rs. 5,09,306/- and Rs. 5,30,094/- respectively by the learned Assessing Officer. Dipikaben Alpeshkumar Patel

J B Dairy Farms Private Limited, Bangalore vs. Income Tax Officer Ward (4)(1)(1), Bangalore

In the result, appeal filed by the assessee is partly allowed for statistical purposes

ITA 1667/BANG/2024[2017-18]Status: DisposedITAT Bangalore18 Dec 2024AY 2017-18

Bench: Shri Waseem Ahmed & Shri Keshav Dubeyassessment Year: 2017-18

For Appellant: Sri Subramanya Bhat, A.RFor Respondent: Ms. Neha Sahay, D.R

Section 142(1)Section 144Section 234Section 234ASection 250Section 69A

under section 234 of the Income Tax Act under the facts and circumstances of the case. The appellant contends that the levy of interest under section 234A, 234 B and 234 C of the Act also bad in law as the period, rate, quantum and method of calculation adopted

Rics India Private Ltd., Haryana vs. DCIT Circle-3(1), Haryana

In the result, the appeal of the assessee is partly allowed

ITA 816/DEL/2022[2017-18]Status: DisposedITAT Delhi18 Dec 2024AY 2017-18

Bench: Shri M. Balaganesh & Shri Anubhav Sharmarics India Pvt. Ltd, Vs. Additional/ Joint/ Deputy/ Gf-17, Ground Floor, Assistant Commissioner Of Block B, Vatika Atrium Income Tax/ Income-Tax Centre 53, Gurgaon Officer, National Faceless 122002 Assessment Centre, Delhi (Appellant) (Respondent) Pan: Aafcr7432K

For Appellant: Shri Ajit Kumar Jain, AdvFor Respondent: Shri Zafarul Haque Tanweer, CIT DR

Section 143(3)Section 144BSection 92C

raised by the assessee are hereby allowed. 9. The Ground No. 13 raised by the assessee is challenging the levy of interest under section 234A of the Act. The learned AO is directed to examine whether the return was filed within the due date prescribed RICS India Pvt. Ltd under ... prescribed by the CBDT for the year under consideration. If the return is filed beyond the said due date /extended due date, then interest under section 234A of the Act is leviable. The chargeability of interest under section 234 B of the Act is consequential in nature. In respect

Barmer Lignite Mining Co. Ltd., C-Scheme, Jaipur vs. DCIT, Circle-6, Jaipur

Appeals of the assessee are allowed for statistical purposes in view of our detailed order (supra)

ITA 460/JPR/2023[2016-17]Status: DisposedITAT Jaipur16 Dec 2024AY 2016-17

Section 234ASection 250Section 94E

2 PER GAGAN GOYAL, A.M: These are cross appeals by the revenue and assessee both are directed against the order

M/S. Qliktech International Ab, Bangalore vs. Deputy Commissioner of Income Tax, Assessment Circle-2(1), Bengaluru

In the result, the appeal filed by the assessee is partly allowed for statistical purposes

ITA 990/BANG/2023[2021-22]Status: DisposedITAT Bangalore16 Dec 2024AY 2021-22

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri Ketan Ved, AdvocateFor Respondent: Shri A Sreenivasa Rao, CIT (DR)

hereby allowed for statistical purposes. 15. The assessee in ground No. 6 prays to issue a direction to the AO for levying of interest under section 234A and 234B of the Act as per the provisions of law. In our considered view, such grounds are consequential in nature ... direct the AO to levy the interest under section 234A and 234B of the Act as per the provisions of law. Hence the ground of appeal of the assessee is hereby allowed for statistical purposes. 16. In the result, the appeal filed by the assessee is partly allowed for statistical

Ashwin S. Mehta (Legal Heir of Late Rasila S. Mehta), Mumbai vs. ACIT, CC- 4(1), Mumbai

Appeal is allowed for

ITA 295/MUM/2024[2020-21]Status: DisposedITAT Mumbai13 Dec 2024AY 2020-21

Bench: Shri Amarjit Singhshri Sandeep Singh Karhail

For Appellant: Shri Dharmesh ShahFor Respondent: Dr. P. Daniel (Spl. Counsel for the Department)

Section 142(1)Section 143(2)Section 143(3)Section 234BSection 250Section 3(2)Section 68

decision vide order dated 27/12/2017, the coordinate bench of the Tribunal observed as follows: — “20. Ground Nos. 3 & 4 relate to levy or interest under Section 234A, 234B and 234C as well as calculation of the said interest. We find that the said issue has been decided by the Coordinate ... Ground Nos. 2 &3 in A.Y. 2012-13 and 2013-14 relating to levy and calculation of interest under Section 234A, 2343B and 234C are similar to ground Nos. 3 & 4 ground taken in the case of Shri Sudhir S. Mehta in ITA No. 5799/Mum/2015 for A.Y. 2009-10, both

Vanguard Total International Stock Index Fundq, Mumbai vs. Assisatant Commissioner of Income Tax (International Taxation)-4(3)(1), Mumbai

In the result, appeal of the assessee is allowed

ITA 4656/MUM/2023[2021-22]Status: DisposedITAT Mumbai13 Dec 2024AY 2021-22

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Ms. Kavitha Rajagopal, Hon’Ble

For Appellant: Shri Anish Thacker & Shri Pranay Gandhi, A/RsFor Respondent: Shri Krishna Kumar, Sr. D/R

Section 143(2)Section 143(3)Section 144CSection 144C(13)Section 144C(2)Section 144C(3)Section 144C(5)Section 70Section 70(2)

instead of INR 100,857,800 as computed by the Appellant. 11. The learned ACIT erred in levying interest under section 234A of the Act amounting to INR 1,753,104 without appreciating that there was no delay in filing the return of income and payment of taxes

Dayal Cotspin Limited, Akola vs. ACIT, Akola Circle, Akola

In the result, appeal filed by the assessee is allowed

ITA 87/NAG/2024[2012-13]Status: DisposedITAT Nagpur12 Dec 2024AY 2012-13

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kishore P. DewaniFor Respondent: Shri Abhay Y. Marathe

Section 132(1)Section 142(1)Section 143Section 143(3)Section 147Section 148Section 154Section 234ASection 68

with law. 10. The assessee denies liability to pay interest u/s 234A, 234B and 234C of I.T. Act 1961. Without prejudice, levy of interest under section 234A, 234B and 234C of I.T. Act 1961 is unjustified, unwarranted and excessive. Any other ground that shall be prayed at the time

Dilipkumar Phoolchand Jain, Mumbai vs. ACIT-20(1), Mumbai

ITA 2334/MUM/2024[2014-15]Status: DisposedITAT Mumbai12 Dec 2024AY 2014-15

Bench: Shri Amarjit Singh & Shri Sunil Kumar Singhassessment Year: 2014-15 Dilipkumar Phoolchand Jain Acit-20(1), Mumbai

For Appellant: Shri Dipesh RupareliaFor Respondent: Shri R.R. Makwana, Sr. DR

Section 143(3)Section 194Section 234ASection 234BSection 234CSection 271(1)(c)Section 271FSection 274

added to the total income of the Appellant (and not the entire amount of alleged unaccounted sales); 11. Erred in levying interest under Section 234A, Section 234B and Section 234C of the Act; 12. Erred in Initiating penalty proceedings under Section 271F of the Act; and 13. Erred in Initiating