“interest under section 234B”

InterestSection 234BSection 234B1,475 judgments

The decision most relied on for interest under section 234B is Godrej & Boyce Mfg. Co. Ltd. v. DCIT (328 ITR 81), cited in 1,183 judgments on BharatTax.

Leading authorities on interest under section 234B

Godrej & Boyce Mfg. Co. Ltd. v. DCIT

328 ITR 81 · 2010 · High Court

1,183

citing judgments

Rule 8D, for computing disallowance under Section 14A for expenses related to exempt income, applies from Assessment Year 2008-09 onwards; for prior years, a reasonable disallowance must be made. The disallowance under Section 14A cannot exceed the actual exempt income earned.

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.

CIT v. EKL Appliances Ltd.

345 ITR 241 · 2012 · High Court

422

citing judgments

Transfer pricing adjustments for outstanding receivables are permissible only if the Tax Officer establishes, through analysis over a period, a pattern indicating an international transaction intended to benefit an associated enterprise. The Tax Officer cannot question purely business decisions like royalty payments or exceed jurisdiction by applying cost-benefit analysis to determine the arm's length price of services.

CIT v. Cotton Naturals (I) (P.) Ltd.

55 Taxmann.com 523 · 2015 · High Court

273

citing judgments

The interest rate for benchmarking foreign currency loans advanced to Associated Enterprises should be the market-determined rate applicable to the currency of the loan, such as LIBOR for US Dollar loans, rather than a domestic lending rate like the Indian PLR.

DIT v. GE Packaged Power Inc.

373 ITR 65 · 2015 · High Court

199

citing judgments

Interest under section 234B for default in payment of advance tax is not leviable when the entire income is subject to tax deduction at source under section 195, as no advance tax liability arises for the assessee in such circumstances.

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.

DIT v. NGC Network Asia LLC

313 ITR 187 · 2009 · High Court

144

citing judgments

Where a duty is cast on the payer to deduct and pay tax at source under Section 195, the payee-assessee cannot be levied interest under Section 234B for failure to pay advance tax if the payer defaults on its TDS obligation. This principle may also extend to interest under Section 234C.

80P(2)(d) of the Act. In Kaliandas Udyag Bhavan Premises Co-op Society Ltd. v. ITO

94 Taxmann.com 15 · 2018 · ITAT

130

citing judgments

A co-operative society, even if it is a co-operative bank whose general deduction under Section 80P is restricted by Section 80P(4), can still claim a deduction under Section 80P(2)(d) for interest income derived from its investments held with another co-operative society, as it retains its identity as a co-operative society.

Judgments citing interest under section 234B

Sir Ratan Tata Trust, Mumbai Suburban vs. Deputy Commissioner of Income Tax (Exemption)-2(1), Mumbai

In the result, both the appeals of the assessee in both AY 2014-15 and AY

ITA 4154/MUM/2023[2014-15]Status: DisposedITAT Mumbai26 Aug 2024AY 2014-15

Bench: Ms Padmavathy S, Am & Shri Rahul Chaudhary, Jm

For Appellant: Shri P. J. Pardiwala a/wFor Respondent: Shri Sanyogita Nagpal, CIT-DR

Section 1Section 10(34)Section 11Section 11(5)Section 12ASection 13(1)(c)Section 13(1)(d)Section 13(2)(h)Section 2(15)

assessee Trust. It is ordered accordingly. 36. The assessee raised ground in both AY 2014-15 and AY 2018-19 with regard to interest under section 234B & 234C and penalty under section 270A of the Act. These grounds are consequential and does not warrant separate adjudication. 37. In the result

Goodrich Corporation, United States of America vs. Assistant Commissioner of Income Tax, Circle 1(3)(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 988/DEL/2024[2018-19]Status: DisposedITAT Delhi22 Aug 2024AY 2018-19

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Nikhil Ranjan, AdvFor Respondent: Ms. Banita Devi Neorem, CIT-DR

Section 143(3)Section 147Section 153Section 234ASection 234BSection 234FSection 270A

erred in levying interest under section 234A of the Act amounting to INR 2,37,54,375. 3 Goodrich Corporation Levy of interest under section 234B 9. erred in levying interest under section 234B of the Act amounting to INR 3,69,51,250. Levy of late filing fees under

Late Indira Gandhi Nagri Sahakari Pat Purwatha Sanstha Maryadit, Akola vs. ITO, Ward-2, Akola

In the result, appeal filed by the assessee is allowed

ITA 367/NAG/2023[2018-19]Status: DisposedITAT Nagpur21 Aug 2024AY 2018-19

Bench: Shri V. Durga Rao

For Appellant: NoneFor Respondent: Shri Abhay Y. Marathe

Section 234BSection 234CSection 80Section 80(2)(d)Section 80P(2)(a)Section 80P(2)(d)Section 80p(2)(d)

Thus, grounds no.1 to 7, are allowed. 10. Grounds no.8 and 9, relate to levy of interest under section 234B and 234C of the Act. 11. Levy of interest being consequential in nature, thus, these grounds are not required to be adjudicated separately. 12. Grounds no.10 and 11, being general

Bsnl Employees Co-Operative Credit Society Limited, Hubli vs. Assistant Commissioner of Income Tax, Circle-3(1), Hubli

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

ITA 1003/BANG/2024[2012-13]Status: DisposedITAT Bangalore21 Aug 2024AY 2012-13

Bench: Shri Laxmi Prasad Sahu & Shri Keshav Dubeyassessment Year : 2012-13

For Appellant: Shri Ravishankar, AdvocateFor Respondent: Shri V. Parithivel, Jt. CIT(DR)(ITAT), Bengaluru

Section 234Section 234BSection 250Section 57Section 80P

Apex Court in the case of Karanvir Singh 349 ITR 692, the Appellant denies itself liable to be charged to interest under section 234B & 234 C of the Income Tax Act on the facts and circumstances of the case. The appellant contends that the levy of interest under section

Ravi Jakhar, Mumbai vs. Ass. Commissioner of Income Tax, Circle 35(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 3299/MUM/2024[ASS YEAR 2013-2014]Status: DisposedITAT Mumbai21 Aug 2024

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Sandeep Singh Karhail, Hon’Ble

For Appellant: Shri Madhur Agrawal & Shri Fenil Bhatt, A/RFor Respondent: Smt. Mahita Nair, Sr. D/R

Section 2Section 234BSection 234CSection 48Section 54FSection 69

facts and in the circumstances of the case and in law, the Ld. AO erred in charging interest under section 234B and under section 234C of the Act. 4.2. The Appellant prays that the Ld. AO be directed to delete interest charged under section 234B and 234C

Anand Kumar Chaurasia, Delhi vs. Deputy Commissioner of Income Tax, Central Circle-27, New Delhi, Delhi

In the result, appeals of the assessee are allowed for

ITA 3852/DEL/2023[2018-19]Status: DisposedITAT Delhi21 Aug 2024AY 2018-19

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandraिनधा"रणवष"/Assessment Year: 2017-18

Section 132Section 143(3)Section 153DSection 68

already declared under the IDS. 8. That the CIT(A) erred in confirming the action of the assessing officer in levying interest under section 234B of the Act. The appellant craves leave to add, amend, alter or vary the above grounds of appeal at or before the time of hearing

Anand Kumar Chaurasia, Delhi vs. Deputy Commissioner of Income Tax, Central Circle-27, New Delhi, Delhi

In the result, appeals of the assessee are allowed for

ITA 3842/DEL/2023[2017-18]Status: DisposedITAT Delhi21 Aug 2024AY 2017-18

Bench: Shri Challa Nagendra Prasad & Shri Naveen Chandraिनधा"रणवष"/Assessment Year: 2017-18

Section 132Section 143(3)Section 153DSection 68

Fis Global Business Solutions India Private Ltd., Delhi vs. ACIT Circle-7(1), Delhi

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

ITA 1502/DEL/2022[2005-06]Status: DisposedITAT Delhi21 Aug 2024AY 2005-06

Bench: Dr. B. R. R. Kumarsh. Vimal Kumar

For Appellant: Sh. Himanshu S. Sinha, Adv. &For Respondent: Sh. Rajesh Kumar, CIT-DR

Section 143(3)Section 234BSection 271(1)(c)

ITAT’s order dated April 11, 2018. Other Grounds 7. That the Ld. AO erred on facts and in law in charging interest under section 234B and 234C of the Act. 8. That the Ld. AO erred on facts and in law in initiating penalty proceedings under, section

Sanjay Danchand Ghodawat, Jaysinghpur vs. The Assistant Commissioner of Income Tax, Circle Ichalkaranji Circle, Ichalkaranji

In the result, appeal of the assessee in ITA No

ITA 541/PUN/2024[2017-18]Status: DisposedITAT Pune20 Aug 2024AY 2017-18

Bench: Ms.Astha Chandra & Dr.Dipak P. Ripoteआयकर अपील सं. / Ita No.540/Pun/2024 िनधा"रण वष" / Assessment Year: 2016-17 Sanjay Danchandghodawat, Vs The Assistant 28 Sushreya, Yashwant Co-Op Commissioner Of Hsg Society, Income Tax, Jaysinghpur – 416101. Cir Ichalkaranji Circle, Maharashtra Ichalkaranji, Pan: Adlpg5040N Maharashtra – 416101. Appellant/ Assessee Respondent / Revenue आयकर अपील सं. / Ita No.541/Pun/2024 िनधा"रण वष" / Assessment Year: 2017-18 Sanjay Danchandghodawat, Vs The Assistant 28 Sushreya, Yashwant Co-Op Commissioner Of Hsg Society, Income Tax, Jaysinghpur – 416101. Cir Ichalkaranji Circle, Maharashtra Ichalkaranji, Pan: Adlpg5040N Maharashtra – 416101. Appellant/ Assessee Respondent / Revenue आयकरअपीलसं. / Ita No.598/Pun/2024 िनधा"रणवष" / Assessment Year: 2017-18 The Assistant Vs Sanjay Danchandghodawat, Commissioner Of Income 28 Sushreya, Yashwant Co- Tax, Op Hsg Society, Kolhapur. Jaysinghpur – 416101. Maharashtra Pan: Adlpg5040N Appellant/ Revenue Respondent /Assessee

Section 234BSection 250Section 69

charge the appellant with liability on the facts of the case. 4. a) The appellant denies itself liable to be levied to interest under section 234B of the Act, as the computation of interest of was not provided to the appellant as regard to the rate, period and method ... calculation of interest under the facts and circumstances of the case. b) Without prejudice, the interest under section 234B is not leviable and ought to have been waived on the facts of the case. The appellant craves leave to add, alter, delete or substitute any of the grounds urged above

Sanjay Danchand Ghodawat, Jaysinghpur vs. The Assistant Commissioner of Income Tax, Circle Ichalkaranji Circle, Ichalkaranji

In the result, appeal of the assessee in ITA No

ITA 540/PUN/2024[2016-17]Status: DisposedITAT Pune20 Aug 2024AY 2016-17

Section 234BSection 250Section 69

Abul Wais Abdus Salam, Mumbai vs. ITO41(1)(1), Kautilya Bhavan

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

ITA 515/MUM/2024[2021-22]Status: DisposedITAT Mumbai16 Aug 2024AY 2021-22

Bench: Shri Prashant Maharishiassessment Year: 2021-21 Abul Wais Abdus Salam Ito, Ward-41(1)(1), Mumbai Gala No. 17, Mbk Compound M/S A-1 Trading Co, Khairani Vs. Road, Sakinaka, Mumbai- 400072. Pan: Aaapa 7242 C (Appellant) (Respondent) Present For: Assessee By : Shri Vimal Punmiya Revenue By : Shri R.R. Makwana, Sr. Dr

For Appellant: Shri Vimal PunmiyaFor Respondent: Shri R.R. Makwana, SR. DR

Section 154Section 234BSection 56(2)(x)

respective head of income from other sources and considered for the computation of total income. iii. The ld. CIT(A) erred in confirming interest under section 234B and 234C of the Income Tax Act 1961. iv. The appellant craves leave to add further grounds or to amend or alter

Sonal Samit Vartak, Mumbai vs. Income Tax Officer, Ward-35(3)(3), Mumbai

In the result, appeal filed by the assessee is allowed

ITA 1139/MUM/2024[2011-12]Status: DisposedITAT Mumbai16 Aug 2024AY 2011-12

Bench: Shri Prashant Maharishiassessment Year: 2011-12 Sonal Samit Vartak Ito, Ward-35(3)(3), Mumbai [Now Assessed 66, C-9, Mig Colony, Bandra Vs. With Income Tax (E), Mumbai-400051. Officer, Ward-42(3)(4), Mumbai Pan: Afnpp 2913 H (Appellant) (Respondent) Present For: Assessee By : Shri V.G. Ginde A/W Shri Kumar Kale Revenue By : Shri R.R. Makwana, Sr. Dr

For Appellant: Shri V.G. Ginde a/w Shri Kumar KaleFor Respondent: Shri R.R. Makwana, SR. DR

Section 143(3)Section 148Section 234B

ACIT, Circle-51(1), New Delhi vs. Naveen Batra, New Delhi

In the result, the Cross Objection of the assessee is partly allowed

ITA 32/DEL/2020[2017-18]Status: DisposedITAT Delhi14 Aug 2024AY 2017-18

Bench: Shri Pradip Kumar Kedia & Shri Yogesh Kumar Usassessment Year 2017-18

For Respondent: Shri Subhra Jyoti Chakraborty, CIT-DR

Section 133ASection 143(3)

ordinate Bench in Arun Bansal vs. ACIT, ITA No.2615/Del/2022 order dated 29th May, 2023 while seeking relief from levy of interest under Section 234B of the Act in the similar circumstances. 9. The CIT-DR for the Revenue justified the action of the AO to invoke provisions of Section 115BBE ... thus cannot be faulted. 17. Another grievance of the assessee as per the Cross Objection relates to non-applicability of interest under Section 234B of the Act with reference to surplus cash found and seized in the course of search. 17.1 As noted above, in the course of hearing before

Sasken Foundation, Bangalore vs. Income Tax Officer, Ward-1, Exemptions, Bangalore

In the result, appeal of the assessee is allowed

ITA 1248/BANG/2024[2018-19]Status: DisposedITAT Bangalore13 Aug 2024AY 2018-19

Bench: Shri Chandra Poojari & Shri Keshav Dubeyassessment Year: 2018-19

For Appellant: Sri Padam Chand Khincha, A.RFor Respondent: Shri V. Parithivel, D.R

Section 11Section 11(2)Section 12ASection 142Section 143Section 234ASection 234BSection 250Section 80G

under section 11 (2) amounting to Rs. 77, 12,882 should be allowed as claimed in the return of income. 3. Levy of interest under section 234B and 234C 3.1 The learned AO and the CIT(A), NFAC have erred in confirming the levy of interest under section 234A

Standard Chartered Bank (Singapore)Limited, Mumbai vs. The Deputy Commissioner of Income Tax International Taxation Circle 4(2)(2), Mumbai

In the result, appeal of the assessee is allowed

ITA 2505/MUM/2024[2021-22]Status: DisposedITAT Mumbai12 Aug 2024AY 2021-22

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Rahul Chaudhary, Hon’Ble

For Appellant: Shri Dhanesh Bafna, Ms. Chandni Shah & ShriFor Respondent: Shri Anil Sant, Addl. CIT, D/R

Section 143(1)Section 196DSection 208Section 234BSection 234C

duty is cast on the payer to deduct and pay the tax at source, on payer's failure to do so, no interest under section 234B can be imposed on the payee assessee. We are of the considered view that it is not case of deferment in payment of advance

Genpact Services Llc, Gurgaon vs. ACIT, Circle-1(3)(1) Int. Taxation, Delhi

In the result, the Assessee’s appeal is allowed

ITA 1834/DEL/2022[2018-19]Status: DisposedITAT Delhi09 Aug 2024AY 2018-19

Bench: Shri Shamim Yahya & Shri Vimal Kumara.Yr. : 2018-19 M/S Genpact Services Llc Vs. Assistant Commissioner Of Plot No. 22A & B, Sector-18, Income Tax, Udyog Vihar, Circle – Int. Tax 1(3)(1), Gurgaon, New Delhi Haryana-122002 (Pan: Aaccg3353P) (Appellant) (Respondent)

For Appellant: Shri Vishal Kalra, Adv. & Ms. ReemaFor Respondent: Shri Zafrul Haque Tanweer, CIT(DR)

Section 143(3)Section 144CSection 144C(10)Section 144C(13)

demand payable by the Appellant. 8. That on facts and in circumstances of the case, the A0 has erred in computing excess interest under section 234B and 234Cof the Act while computing the amount of demand payable by the Appellant. That the above grounds and sub grounds of objections

Gopaliyengar Madabushi Muralidhar, Bengaluru vs. Income-Tax Officer, Ward-7(2)(4), Bengaluru

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

ITA 956/BANG/2023[2016-17]Status: DisposedITAT Bangalore08 Aug 2024AY 2016-17

Bench: Shri Chandra Poojari (Accountant Member), Shri Keshav Dubey (Judicial Member)

For Appellant: Shri Hemant Pai, CAFor Respondent: Shri V. Parithivel, JCIT-DR

Section 143(2)Section 143(3)Section 144Section 234BSection 250Section 271(1)(c)Section 68

Gopaliyengar Madabushi Muralidhar 5. Other grounds: 5.1. The Learned AO has erred in law and on facts in levying interest under section 234B and 234C of the Act. The interest so levied, being erroneous, is required to be deleted. 5.2. The Appellant craves leave to add, amend, alter or delete

Investcorp Real Estate Yield Fund, Bandra, Mumbai vs. ITO-23(1)(1), Mumbai

In the result, appeal of the assessee is dismissed

ITA 4638/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Aug 2024AY 2015-16

Bench: Shri Narendra Kumar Billaiya, Hon’Ble & Shri Raj Kumar Chauhan, Hon’Ble

For Appellant: Shri Dhanesh Bafna a/w Ms. Chandani Shah & MsFor Respondent: Shri Akshay Tapadiya, D/R

Section 143(1)Section 160(1)(iv)Section 234BSection 234C

facts and in the circumstances of the case and in law, the JCIT(A) erred in not directing the AO to delete the interest under section 234B of the Income- tax Act, 1961 ('the Act') computed in the Intimation under section

Emerging Markets Index Non Lendable Fund, Mumbai vs. DCIT (International Taxation)-2(2)(1), Mumbai

In the result appeal of the assessee is partly allowed

ITA 4589/MUM/2023[2021-22]Status: DisposedITAT Mumbai05 Aug 2024AY 2021-22

Bench: Shri Prashant Maharishi, Am & Shrisandeep Singh Karhail, Jm A.Y.2021 – 22 Emerging Markets Index The Deputy Commissioner Of Non-Lendable Fund Income Tax (International C/O Ernst & Young Llp Taxation) – Circle –2 (2) (1) 17Th Floor 1722, 17T H Floor, Vs. The Ruby Air India Building, 29, Senapati Bapat Marg Nariman Point, Dadar (West) Mumbai – 21 Mumbai – 28 (Appellant) (Respondent) Pan Aaaae3262D Assessee By Shri Anish Thacker & Pranay Gandhi Revenue By Shri Anil Sant Additional Commissioner Of Income Tax Date Of Hearing 7 May 2024 Date Of Pronouncement 5 August 2024

Section 111ASection 115ASection 234ASection 234BSection 234CSection 270A

general in nature, ground number 9 is against the levy of interest under section 234A, ground number 10 against the levy of interest under section 234B and ground number 11 on levy of interest under section 234C of the act. Ground number 12 is against initiation of penalty proceedings under

Mahavir Transmission Ltd, New Delhi vs. DCIT, Central Circle-25, Delhi

In the result, the appeal of the assessee is allowed

ITA 2636/DEL/2022[2021-22]Status: DisposedITAT Delhi02 Aug 2024AY 2021-22

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Ved Jain, Adv. &For Respondent: Subhra J. Chakraborty, CIT-DR

Section 132(4)Section 153ASection 153DSection 234BSection 69C

case, the learned CIT(A) has erred, both on facts and in law, in confirming the action of the AO in wrongly charging interest under section 234B of the Income Tax Act.” Addition on account of excess stock found during search: 3. Brief facts of the case are that