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“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
92
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
85
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
70
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
66
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
61
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

Hcl Technologies Philippines Inc., New Delhi vs. ACIT, Circle-Int. Tax 2(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 543/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

resident Appellant., 10. That on the facts and circumstances of the case and in law, the assessing officer erred in levying interest under section 234A and 234B of the Act.‖ 2.1. Both the parties before us fairly stated that HCL Singapore Pte Ltd in ITA No. 537/Del/2021 be taken

Hcl Singapore Pte Ltd, New Delhi vs. ACIT Circle International Taxation 2(1)(1), New Delhi

In the result, the appeal of the assessee in ITA No

ITA 537/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

resident Appellant., 10. That on the facts and circumstances of the case and in law, the assessing officer erred in levying interest under section 234A and 234B of the Act.‖ 2.1. Both the parties before us fairly stated that HCL Singapore Pte Ltd in ITA No. 537/Del/2021 be taken

Hcl Technologies Denmark Aps, New Delhi vs. ACIT Circle- 2(1)(1) International Taxation, New Delhi

In the result, the appeal of the assessee in ITA No

ITA 528/DEL/2021[2012-13]Status: DisposedITAT Delhi20 Dec 2023AY 2012-13

Bench: SHRI KUL BHARAT (Judicial Member), SHRI M. BALAGANESH (Accountant Member)

Section 144C(13)

resident Appellant., 10. That on the facts and circumstances of the case and in law, the assessing officer erred in levying interest under section 234A and 234B of the Act.‖ 2.1. Both the parties before us fairly stated that HCL Singapore Pte Ltd in ITA No. 537/Del/2021 be taken

ACIT Circle-2(2)(1) International Taxation, New Delhi vs. Michelin Global Mobility Sa, Switzerland

In the result, the appeal of the Revenue is dismissed

ITA 1748/DEL/2023[2017-18]Status: DisposedITAT Delhi19 Dec 2023AY 2017-18

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Nikhil Tiwari, CAFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 115ASection 234ASection 270A

Swiss DTAA read with MFN clause. 7. Ground 4: That on facts and circumstances of the case, the Learned AO erred in charging interest under section 234A, 234B, 234C and 234D of the Act, however, at the same time inadvertently did not compute tax on the assessed income

ACIT Circle-2(2)(1), International Taxation, New Delhi vs. Michelin Roh Co. Ltd., Thailand

In the result, both the appeals of the Revenue are dismissed

ITA 1747/DEL/2023[2018-19]Status: DisposedITAT Delhi19 Dec 2023AY 2018-19

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Nikhil Tiwari, CAFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 234ASection 270A

country of residence, i.e. Thailand. 4. Ground 4: That on facts and circumstances of the case, the Learned AO erred in charging interest under section 234A, 234B, 234C and 234D of the Act, however, at the same time inadvertently did not compute tax on the assessed income in the computation

ACIT Circle-2(2)(1), International Taxation, New Delhi vs. Michelin Roh Co. Ltd., Thailand

In the result, both the appeals of the Revenue are dismissed

ITA 1746/DEL/2023[2017-18]Status: DisposedITAT Delhi19 Dec 2023AY 2017-18

Bench: Dr. B. R. R. Kumarms. Astha Chandra

For Appellant: Sh. Nikhil Tiwari, CAFor Respondent: Sh. Sanjay Kumar, Sr. DR
Section 234ASection 270A

country of residence, i.e. Thailand. 4. Ground 4: That on facts and circumstances of the case, the Learned AO erred in charging interest under section 234A, 234B, 234C and 234D of the Act, however, at the same time inadvertently did not compute tax on the assessed income in the computation

Servicenow Nederland Bv, Netherlands vs. Assistant Commissioner of Income Tax, Circle International Tax 3(1)(2), Delhi

In the result, assessee’s appeals in ITA No

ITA 2023/DEL/2023[2021-22]Status: DisposedITAT Delhi13 Dec 2023AY 2021-22

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar: (A.Y. 2020-21) & : (A.Y. 2021-22)

Section 143(3)Section 144C(13)Section 144C(5)Section 195Section 234ASection 234CSection 270ASection 274

erred in charging inter under section 234C/234D of the Act. 8. On the facts and circumstance of the case and in law, the interest under section 234A and 234B the Act are consequential in nature and would undergo change on the basis of relief provided in the aforesaid grounds

Servicenow Nederland Bv, Netherlands vs. Assistant Commissioner of Income Tax, Circle International Taxation 3(1)(2), New Delhi

In the result, assessee’s appeals in ITA No

ITA 2022/DEL/2023[2020-21]Status: DisposedITAT Delhi13 Dec 2023AY 2020-21

Bench: Shri Kul Bharat & Dr. B.R.R. Kumar: (A.Y. 2020-21) & : (A.Y. 2021-22)

Section 143(3)Section 144C(13)Section 144C(5)Section 195Section 234ASection 234CSection 270ASection 274

erred in charging inter under section 234C/234D of the Act. 8. On the facts and circumstance of the case and in law, the interest under section 234A and 234B the Act are consequential in nature and would undergo change on the basis of relief provided in the aforesaid grounds

Atomstroyexport, Mumbai vs. DCIT (It)Circle -1(1)(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 575/MUM/2023[2020-2021]Status: DisposedITAT Mumbai12 Dec 2023AY 2020-2021

Bench: Shri Kuldip Singh, Jm & Ms Padmavathy S, Am

For Respondent: Shri Ajay Kumar Sharma, CIT-DR
Section 143(3)Section 234ASection 234BSection 44B

failed to appreciate that the receipts from the Offshore Supply Contracts are not taxable in India. 4) The learned DCIT/DRP erred in charging interest under section 234A of Rs. 4.57,92,447/-. 5) The learned DCIT/DRP erred in charging interest under section 234B of Rs. 38,92,35,799/- Relief

Sanjay Basudeo Agarwal, Mumbai vs. Income Tax Officer 25(1)(1), Bandra Kurla Complex

In the result, the appeal filed by the assessee is allowed”

ITA 2398/MUM/2023[2014-15]Status: DisposedITAT Mumbai12 Dec 2023AY 2014-15

Bench: Shri Pavan Kumar Gadalesanjay Basudeo Agarwal, Vs Ito, Ward - 25(1)(1), 1601, Kanchan Ganga, Kautilya Bhawan, J.P Road, Manishnagar, G- Block,Bkc, Andheri (W), Bandra Kurla Complex, Mumbai-400053. Mumbai-400051. Pan/Gir No. : Aabpa1748E Appellant .. Respondent

For Appellant: Shri Vimal Punmiya.ARFor Respondent: Shri.UjjawalkumarChavhanSr.DR
Section 10(38)Section 143(3)Section 234ASection 271(1)(c)Section 68Section 69

addition of the the same to the total income of the assessee. 4. The Ld. CIT(A) erred in confirming the charging of interest under section 234A, 234B and 234C of the Income Tax Act 1961. 5. The Ld. CIT(A) erred in confirming the initiation of the penalty proceeding

Boeing India Private Limited, New Delhi vs. DCIT, Circle-4(2), New Delhi

ITA 802/DEL/2022[2017-18]Status: DisposedITAT Delhi08 Dec 2023AY 2017-18

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI CHALLA NAGENDRA PRASAD (Judicial Member)

For Appellant: Shri Ravi Sharma, AdvocateFor Respondent: Shri Rajesh Kumar, CIT DR
Section 139Section 143Section 143(3)Section 144BSection 144C(13)Section 153Section 234ASection 92

year under consideration. 5. On the facts, in the circumstances of the case and in law, the Ld. AO erred in levying interest under section 234A of the Act disregarding the fact that return of income was filed under section 139 (1) of the Act within the due date specified

M/S. Rana Bar P. Ltd., New Delhi vs. ITO, New Delhi

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

ITA 2690/DEL/2014[2009-10]Status: DisposedITAT Delhi06 Dec 2023AY 2009-10

Bench: N.K. Billaiya & Ms. Astha Chandraasstt. Year: 2009-10

For Appellant: Shri Ankit Gupta, AdvocateFor Respondent: Shri P.N. Barnwal, CIT-DR
Section 143(3)Section 14ASection 234ASection 68Section 801CSection 80I

general in nature and do not require separate adjudication. Ground No. 13 relates to charging of interest under section 234A, 234B, 234C and 234D which is consequential. The remaining grounds are being adjudicated herein below. 7. Ground No. 3 relates to rejection of books of account

Pushpa Devi Bajaj, Delhi vs. DCIT, Central Circle-32, Delhi

In the result, appeal of the assessee is partly allowed

ITA 816/DEL/2023[2014-15]Status: DisposedITAT Delhi04 Dec 2023AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Astha Chandraastt. Year: 2014-15 Pushpa Devi Bajaj, Vs. Dcit, Ae-17, 2Nd Floor, Central Circle-32, Tagore Garden, Delhi. West Delhi, New Delhi – 110 027. Pan Abfpb2234D (Appellant) (Respondent)

For Appellant: Shri Ved Jain, AdvocateFor Respondent: Shri P.N. Barnwal, CIT-DR
Section 124Section 142(1)Section 143(2)Section 153ASection 153D

decide ground No.2, 7, 10 and 13 to 18 in favour of the assessee. 9 21. Ground No. 19 regarding levy of interest under section 234A and 234B of the Act is consequential. 22. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court

Meramchand Nemichand, Guntur vs. Income Tax Officer, Ward-1(1), Guntur

In the result, appeals of the assessee are partly allowed

ITA 129/VIZ/2023[2021-22]Status: DisposedITAT Visakhapatnam29 Nov 2023AY 2021-22

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.128/Viz/2023 & 129/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2021-22) Meramchand Nemichand Vs. Income Tax Officer D.No.21-13-40 Ward-1(1) M.N.Buildings, Noonevari Street Guntur Choutra, Guntur [Pan : Aabfn7853M] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri Madhukar Aves, DR
Section 139Section 139(1)Section 140ASection 143(1)Section 234ASection 234BSection 44A

Tribunal and inviting our attention to CBDT Circular No.02/2015 dated 10.02.2015 at page No.26 of the paper book, with regard to chargeability of interest under section 234A of the Income 4 I.T.A. No.128/Viz/2023 & 129/Viz/2023, A.Y.2021-22 Meramchand Nemichand, Guntur Tax Act, 1961 on self-assessment tax paid before the due date ... that as held by the Hon’ble Supreme Court in the case of CIT Vs. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been

Meramchand Nemichand, Guntur vs. Income Tax Officer, Ward-1(1), Guntur

In the result, appeals of the assessee are partly allowed

ITA 128/VIZ/2023[2021-22]Status: DisposedITAT Visakhapatnam29 Nov 2023AY 2021-22

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.128/Viz/2023 & 129/Viz/2023 (ननधधारण वर्ा / Assessment Year : 2021-22) Meramchand Nemichand Vs. Income Tax Officer D.No.21-13-40 Ward-1(1) M.N.Buildings, Noonevari Street Guntur Choutra, Guntur [Pan : Aabfn7853M] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent)

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri Madhukar Aves, DR
Section 139Section 139(1)Section 140ASection 143(1)Section 234ASection 234BSection 44A

Tribunal and inviting our attention to CBDT Circular No.02/2015 dated 10.02.2015 at page No.26 of the paper book, with regard to chargeability of interest under section 234A of the Income 4 I.T.A. No.128/Viz/2023 & 129/Viz/2023, A.Y.2021-22 Meramchand Nemichand, Guntur Tax Act, 1961 on self-assessment tax paid before the due date ... that as held by the Hon’ble Supreme Court in the case of CIT Vs. Prannoy Roy, 309 ITR 231 (2009) that the interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been

Deepak Novochem Technologies Ltd, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle-8(1), Mumbai

In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are allowed partly for statistical purposes

ITA 2562/MUM/2023[2018-2019]Status: DisposedITAT Mumbai28 Nov 2023AY 2018-2019

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Ita Nos. 2558 To 2562/Mum/2023 Assessment Years: 2014-15 To 2018-19 Deepak Novochem The Acit, Cc-8(1), Technologies Ltd., Aayakar Bhavan, Room No. Vs. 515, 5Th Floor, Citi Point, Boat 656, 6Th Floor, M.K. Road, Club Road, Pune City, Mumbai-400020. Pune-411 001. Pan No. Aaccd 5796 K Appellant Respondent Assessee By : Mr. H.P. Mahajani Revenue By : Mrs. Sanyogita Nagpal, Cit-Dr : Date Of Hearing 16/11/2023 Date Of Pronouncement : 28/11/2023

For Appellant: Mr. H.P. MahajaniFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 35

incurred wholly and exclusively for the purposes of business of the Appellant. exclusively for the purposes of business of the Appellant. Levy of interest under section 234A of the Act Levy of interest under section 234A of the Act 2. On the facts and in the circumstances ... respect it is mentioned that the Act. In this respect it is mentioned that- as regards levy of interest as regards levy of interest under section 234A, 234B and 234C of the Act, there cannot be second under section 234A, 234B and 234C of the Act, there cannot be second

Deepak Novochem Technologies Ltd, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle-8(1), Mumbai

In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are allowed partly for statistical purposes

ITA 2561/MUM/2023[2017-2018]Status: DisposedITAT Mumbai28 Nov 2023AY 2017-2018

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Ita Nos. 2558 To 2562/Mum/2023 Assessment Years: 2014-15 To 2018-19 Deepak Novochem The Acit, Cc-8(1), Technologies Ltd., Aayakar Bhavan, Room No. Vs. 515, 5Th Floor, Citi Point, Boat 656, 6Th Floor, M.K. Road, Club Road, Pune City, Mumbai-400020. Pune-411 001. Pan No. Aaccd 5796 K Appellant Respondent Assessee By : Mr. H.P. Mahajani Revenue By : Mrs. Sanyogita Nagpal, Cit-Dr : Date Of Hearing 16/11/2023 Date Of Pronouncement : 28/11/2023

For Appellant: Mr. H.P. MahajaniFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 35

incurred wholly and exclusively for the purposes of business of the Appellant. exclusively for the purposes of business of the Appellant. Levy of interest under section 234A of the Act Levy of interest under section 234A of the Act 2. On the facts and in the circumstances ... respect it is mentioned that the Act. In this respect it is mentioned that- as regards levy of interest as regards levy of interest under section 234A, 234B and 234C of the Act, there cannot be second under section 234A, 234B and 234C of the Act, there cannot be second

Deepak Novochem Technologies Ltd, Mumbai vs. The Assistant Commissioner of Income Tax, Central Circle-8(1), Mumbai

In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are allowed partly for statistical purposes

ITA 2560/MUM/2023[2016-2017]Status: DisposedITAT Mumbai28 Nov 2023AY 2016-2017

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Ita Nos. 2558 To 2562/Mum/2023 Assessment Years: 2014-15 To 2018-19 Deepak Novochem The Acit, Cc-8(1), Technologies Ltd., Aayakar Bhavan, Room No. Vs. 515, 5Th Floor, Citi Point, Boat 656, 6Th Floor, M.K. Road, Club Road, Pune City, Mumbai-400020. Pune-411 001. Pan No. Aaccd 5796 K Appellant Respondent Assessee By : Mr. H.P. Mahajani Revenue By : Mrs. Sanyogita Nagpal, Cit-Dr : Date Of Hearing 16/11/2023 Date Of Pronouncement : 28/11/2023

For Appellant: Mr. H.P. MahajaniFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 35

incurred wholly and exclusively for the purposes of business of the Appellant. exclusively for the purposes of business of the Appellant. Levy of interest under section 234A of the Act Levy of interest under section 234A of the Act 2. On the facts and in the circumstances ... respect it is mentioned that the Act. In this respect it is mentioned that- as regards levy of interest as regards levy of interest under section 234A, 234B and 234C of the Act, there cannot be second under section 234A, 234B and 234C of the Act, there cannot be second

Deepak Novochem Technologies Ltd, Mumbai vs. The Assistant Commissioner of Income Tax-Central Circle-8(1), Mumbai

In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are allowed partly for statistical purposes

ITA 2559/MUM/2023[2015-16]Status: DisposedITAT Mumbai28 Nov 2023AY 2015-16

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Ita Nos. 2558 To 2562/Mum/2023 Assessment Years: 2014-15 To 2018-19 Deepak Novochem The Acit, Cc-8(1), Technologies Ltd., Aayakar Bhavan, Room No. Vs. 515, 5Th Floor, Citi Point, Boat 656, 6Th Floor, M.K. Road, Club Road, Pune City, Mumbai-400020. Pune-411 001. Pan No. Aaccd 5796 K Appellant Respondent Assessee By : Mr. H.P. Mahajani Revenue By : Mrs. Sanyogita Nagpal, Cit-Dr : Date Of Hearing 16/11/2023 Date Of Pronouncement : 28/11/2023

For Appellant: Mr. H.P. MahajaniFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 35

incurred wholly and exclusively for the purposes of business of the Appellant. exclusively for the purposes of business of the Appellant. Levy of interest under section 234A of the Act Levy of interest under section 234A of the Act 2. On the facts and in the circumstances ... respect it is mentioned that the Act. In this respect it is mentioned that- as regards levy of interest as regards levy of interest under section 234A, 234B and 234C of the Act, there cannot be second under section 234A, 234B and 234C of the Act, there cannot be second

Deepak Novochem Technologies Ltd, Mumbai vs. The Assistant Commissioner of Income Tax Central Circle-8(1), Mumbai

In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are In the result, the appeals filed by the assessee are allowed partly for statistical purposes

ITA 2558/MUM/2023[2014-2015]Status: DisposedITAT Mumbai28 Nov 2023AY 2014-2015

Bench: Shri Om Prakash Kant () & Shri Rahul Chaudhary () Ita Nos. 2558 To 2562/Mum/2023 Assessment Years: 2014-15 To 2018-19 Deepak Novochem The Acit, Cc-8(1), Technologies Ltd., Aayakar Bhavan, Room No. Vs. 515, 5Th Floor, Citi Point, Boat 656, 6Th Floor, M.K. Road, Club Road, Pune City, Mumbai-400020. Pune-411 001. Pan No. Aaccd 5796 K Appellant Respondent Assessee By : Mr. H.P. Mahajani Revenue By : Mrs. Sanyogita Nagpal, Cit-Dr : Date Of Hearing 16/11/2023 Date Of Pronouncement : 28/11/2023

For Appellant: Mr. H.P. MahajaniFor Respondent: Mrs. Sanyogita Nagpal, CIT-DR
Section 35

incurred wholly and exclusively for the purposes of business of the Appellant. exclusively for the purposes of business of the Appellant. Levy of interest under section 234A of the Act Levy of interest under section 234A of the Act 2. On the facts and in the circumstances ... respect it is mentioned that the Act. In this respect it is mentioned that- as regards levy of interest as regards levy of interest under section 234A, 234B and 234C of the Act, there cannot be second under section 234A, 234B and 234C of the Act, there cannot be second