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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

Jx Nippon Two Lubricants India Pvt. Ltd, Gurgaon vs. DCIT Circle-2(1), Gurgaon

In the result, the appeal of the assessee is allowed

ITA 4985/DEL/2019[2015-16]Status: DisposedITAT Delhi02 Mar 2021AY 2015-16

Bench: Sh. Amit Shukladr. B. R. R. Kumar(Through Video Conferencing) Ita No. 4985/Del/2019 :Asstt. Year : 2015-16 & Sa No. 985/Del/2019 :Asstt. Year : 2015-16 Jx Nippon Two Lubricants India Pvt. Vs Dcit, Ltd., Unit No. 1003, 10Th Floor, Vatika Circle-2(1), City Point, Mg Road, Gurgaon, Gurgaon-122001 Haryana-122001 (Appellant) (Respondent) Pan No. Aadcj3601L Assessee By :Sh. Nageswarrao, Adv. Revenue By:Sh. Vedprakash Mishra, Sr.Dr Date Of Hearing:13.01.2021 Date Of Pronouncement: 02.03.2021

For Appellant: Sh. NageswarRao, AdvFor Respondent: Sh. VedPrakash Mishra, Sr.DR
Section 234ASection 271(1)(c)Section 32Section 32(1)(ii)

Courts and granting relief as prayed. 7. The Ld. AO has erred on facts and in law in proposing to levy interest under section 234A, 234B and234C of the Act. 8. The Ld. AO has erred, in facts and in law, by initiating penalty proceedings under section

Huawei Telecommunications (India) Company Pvt. Ltd., Gurgaon vs. ACIT, Circle- 2(1), Gurgaon

ITA 7510/DEL/2017[2013-14]Status: DisposedITAT Delhi24 Feb 2021AY 2013-14

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Deepark Chopra, AdvocateFor Respondent: Shri Surender Pal, CIT DR
Section 143Section 144CSection 92C(3)

That on the facts and circumstances of the case and in law, the Ld. AO and the Hon'ble DRP erred in levying interest under section 234A, 234B and 234C of the Act. 7. That on the facts and circumstances of the case

Huawei Telecommunications (India) Company Pvt. Ltd., Gurgaon vs. ACIT, Circle- 2(1), Gurgaon

ITA 7509/DEL/2017[2012-13]Status: DisposedITAT Delhi24 Feb 2021AY 2012-13

Bench: Shri R.K. Panda & Shri Kuldip Singh

For Appellant: Shri Deepark Chopra, AdvocateFor Respondent: Shri Surender Pal, CIT DR
Section 143Section 144CSection 92C(3)

That on the facts and circumstances of the case and in law, the Ld. AO and the Hon'ble DRP erred in levying interest under section 234A, 234B and 234C of the Act. 7. That on the facts and circumstances of the case

Puneet Traders, New Delhi vs. ITO Ward - 47(4), New Delhi

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

ITA 6032/DEL/2019[2011-12]Status: DisposedITAT Delhi18 Feb 2021AY 2011-12

Bench: Shri R.K. Pandaasstt. Year 2011-12

For Appellant: Shri S.Krishnan, AdvocateFor Respondent: Shri Sanjiv Mahajan, Sr. DR
Section 147Section 148Section 234ASection 68

wrongly invoking section 68 of the Act treating cash deposits in bank as unexplained income (ii) charging interest under section 234A, 234B and 234C of the Act. All the above actions being erroneous unlawful and untenable it is prayed that the same must be quashed with directions for appropriate relief

Indian National Cong. (I) Aicc vs. C.I.T.- XI

ITA - 180 / 2001HC Delhi23 Mar 2016
Section 139Section 13A

ITA Nos. 145/2001 & 180/2001 Page 1 of 71 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 145/2001 Reserved

Commissioner of Income Tax Del vs. M/S Soverign Commercial P. Ltd

The appeals are allowed with costs of Rs

ITA - 164 / 2002HC Delhi22 Feb 2016
Section 260A

ground did not exist for exercise of the power under Section 148 of the Act. Interest 90. The ITAT’s conclusion that the interest under Section 234A and 234B would not be charged since a specific notice in that behalf was not issued by the AO, was based

Commissioner of Income Tax Del vs. M/S Swastik Commercial P. Ltd

The appeals are allowed with costs of Rs

ITA - 165 / 2002HC Delhi22 Feb 2016
Section 260A

ground did not exist for exercise of the power under Section 148 of the Act. Interest 90. The ITAT’s conclusion that the interest under Section 234A and 234B would not be charged since a specific notice in that behalf was not issued by the AO, was based

Commissioner of Income Tax Del vs. M/S Trishul Commercial P. Ltd

The appeals are allowed with costs of Rs

ITA - 167 / 2002HC Delhi22 Feb 2016
Section 260A

ground did not exist for exercise of the power under Section 148 of the Act. Interest 90. The ITAT’s conclusion that the interest under Section 234A and 234B would not be charged since a specific notice in that behalf was not issued by the AO, was based

Commissioner of Income Tax- Delhi vs. M/S Pasupati Nath Commr. P. Ltd

The appeals are allowed with costs of Rs

ITA - 168 / 2002HC Delhi22 Feb 2016
Section 260A

ground did not exist for exercise of the power under Section 148 of the Act. Interest 90. The ITAT’s conclusion that the interest under Section 234A and 234B would not be charged since a specific notice in that behalf was not issued by the AO, was based

Commissioner of Income Tax Del vs. Sri Chand Gupta

ITA - 18 / 2002HC Delhi31 Jul 2015
Section 132Section 132(5)Section 132BSection 154Section 234ASection 260A

order under Section 132(5) of the Act, i.e., 10th May, 1991 and interest be charged accordingly. The CIT(A) directed that the interest under Section 234A, 234B, 234C of the Act be computed only up to the date of 10th

Commissioner of Income Tax vs. Usha Rani Gupta

ITA - 19 / 2002HC Delhi31 Jul 2015
Section 132Section 132(5)Section 132BSection 154Section 234ASection 260A

order under Section 132(5) of the Act, i.e., 10th May, 1991 and interest be charged accordingly. The CIT(A) directed that the interest under Section 234A, 234B, 234C of the Act be computed only up to the date of 10th

Commissioner of Income Tax Delhi vs. Gian Chand Gupta

ITA - 20 / 2002HC Delhi31 Jul 2015
Section 132Section 132(5)Section 132BSection 154Section 234ASection 260A

order under Section 132(5) of the Act, i.e., 10th May, 1991 and interest be charged accordingly. The CIT(A) directed that the interest under Section 234A, 234B, 234C of the Act be computed only up to the date of 10th

Director of Income Tax vs. E Funds It Solution

The appeals are disposed of

ITA - 735 / 2011HC Delhi05 Feb 2014

facts and in the circumstances of the case, and in law, the Tribunal was justified in holding that appellant is liable to interest under Section 234A and 234B of the Act?‖ 4. By subsequent order dated 2nd March, 2012, two more questions of law being question

Commissioner of Income Tax Delhi I vs. Anant Raj Industries P. Ltd

The appeals are dismissed

ITA - 456 / 2008HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

Commissioner of Income Tax vs. C.J.International Hotels Ltd

The appeals are dismissed

ITA - 453 / 2008HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

Commissioner of Income Tax Delhi II vs. Leroy Somer & Controls India P.Ltd

The appeals are dismissed

ITA - 407 / 2008HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

CIT vs. Ocl India Ltd

The appeals are dismissed

ITA - 1063 / 2007HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

C.I.T vs. Indian Sugar Exim Corporation Ltd

The appeals are dismissed

ITA - 989 / 2008HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

Commissioner of Income Tax vs. Cadence Design Systems I.P.Ltd

The appeals are dismissed

ITA - 992 / 2007HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from

CIT vs. Negolice India Pvt Ltd

The appeals are dismissed

ITA - 986 / 2007HC Delhi06 Feb 2009

payment of Minimum Alternate Tax (MAT) and tax paid in a country or specified territory outside India for the purposes of charge of interest under sections 234A, 234B and 234C 38.1 Under the existing provisions of sections 234A and 234B an assessee is held liable to pay simple interest ... allowed so that interest is not charged on an amount that equals to the taxes paid outside India. Accordingly, for calculating interest under sections 234A, 234B and 234C, the Finance Act, 2006 has provided for (a) reduction of tax credit allowed to be set off under section 115JAA from