“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

Roha Dyechem Pvt.Ltd., Mumbai vs. ACIT-Central Circle 43, Mumbai

In the result, all the appeals of the assessee and revenue except ITA No

ITA 2862/MUM/2009[2006-07]Status: DisposedITAT Mumbai30 Nov 2022AY 2006-07

Bench: Shri Kuldip Singh () & Shri Om Prakash Kant () Assessment Year: 2004-05 Acit Cen Ci-43 Rohadyechem Pvt Ltd., 6Th Floor, R.No. 659, Aayakar Survoday Mill Compund, Bhavan, M.K.Rd. Vs. M.P. Mills, Tardeo, Mumbai 400 020 Mumbai-400 034 Pan No. Aaacr 4974P Appellant Respondent

Section 143Section 143(3)Section 153ASection 80HSection 80ISection 92C

assessee is accordingly allowed partly for statistical purposes. 11.0 The ground No. 7(seven) of the appeal relates to charging of interest under section 234B of the Act, which being consequential in nature, is dismissed as infructuous. 12. Now we take up the appeal of the Revenue for assessment year ... appeal of the assessee is accordingly allowed partly for statistical purposes. 29. The ground no. 9 of the appeal relates to charging of interest under section 234B of the Act, which being a consequential ground, same is dismissed as infructuous. 30. The ground No. 10 of the appeal

Roha Dyechem Pvt.Ltd., Mumbai vs. ACIT-Central Circle 43, Mumbai

In the result, all the appeals of the assessee and revenue except ITA No

ITA 2860/MUM/2009[2004-05]Status: DisposedITAT Mumbai30 Nov 2022AY 2004-05

Section 143Section 143(3)Section 153ASection 80HSection 80ISection 92C

Roha Dyechem P. Ltd, Mumbai vs. ACIT Cen Cir 43, Mumbai

In the result, all the appeals of the assessee and revenue except ITA No

ITA 2859/MUM/2009[2002-03]Status: DisposedITAT Mumbai30 Nov 2022AY 2002-03

Section 143Section 143(3)Section 153ASection 80HSection 80ISection 92C

ACIT Cen Ci-43 vs. Roha Dyechem P. Ltd, Mumbai

In the result, all the appeals of the assessee and revenue except ITA No

ITA 10/MUM/2009[2004-2005]Status: DisposedITAT Mumbai30 Nov 2022AY 2004-2005

Section 143Section 143(3)Section 153ASection 80HSection 80ISection 92C

Mindteck (India) Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-4(1)(1), Bangalore

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

ITA 211/BANG/2022[2017-18]Status: DisposedITAT Bangalore30 Nov 2022AY 2017-18

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Shri K. Sankar Ganesh, D.R

Section 143(3)

positive working capital adjustment; (iii) risk profile between the Appellant and the comparable companies. 5.2 The Appellant craves for consequential relief of interest under section 234B & 234C under the Act. 5.3 The appellant craves leave to add to, alter and/or amend all or any of the foregoing grounds. 2. Further

Shell Informaation Technology International Bv, Mumbai vs. Dy Commissioner of Income Tax (International Taxation)-4(2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 996/MUM/2022[2018-19]Status: DisposedITAT Mumbai28 Nov 2022AY 2018-19

Section 143(3)Section 144C(13)Section 144C(5)Section 2(24)Section 234BSection 270A

Short granting of credit for Tax Deducted at source (TDS) 7. Erred in not granting the TDS credit of Rs. 69,67,972. Interest under section 234B of the Act 8. Erred in levying interest under section 234B of the Act without appreciating the facts and circumstances of the case

Shellinformation Technology International Bv, Mumbai vs. DCIT (It) 4 (2)(1), Mumbai

In the result, appeal of the assessee is partly allowed

ITA 2308/MUM/2022[2019-20]Status: DisposedITAT Mumbai28 Nov 2022AY 2019-20

Section 143(3)Section 144C(13)Section 144C(5)Section 2(24)Section 234BSection 234DSection 270A

cannot be termed as FTS under Article 12(5 )(a) of the India-Netherlands DTAA and hence not subject to tax in India; Interest under section 234B of the Act 6. Erred in levying interest under section 234B of the Act without appreciating the facts and circumstances of the case

DCIT 8(3)(2), Mumbai vs. Vodafone India Ltd, Mumbai

In the result, appeal by the assessee is partly allowed in the terms aforesaid

ITA 5598/MUM/2017[2005-06]Status: DisposedITAT Mumbai28 Nov 2022AY 2005-06

Bench: Shri Vikas Awasthy & Shri M. Balaganeshआअसं. 5598/मुं/2017 ("न.व. 2005-06) Dy. Commissioner Of Income Tax – 8(3)(2), Room No.615, 6Th Floor, Aaykarbhavan, M.K.Road, ...... अपीलाथ"/Appellant Mumbai – 400 020 बनाम Vs. M/S. Vodafone India Ltd. (Formerly Vodafone Essar Ltd.) Peninsula Corporate Park, Ganpat Rao Kadam Marg, Lower Parel, Mumbai 400 013. ..... ""तवाद"/Respondent Pan: Aaach-5332-B आअसं. 5078/मुं/2017 ("न.व. 2005-06) M/S. Vodafone India Ltd. (Formerly Vodafone Essar Ltd.) Peninsula Corporate Park, Ganpat Rao Kadam Marg, Lower Parel, Mumbai 400 013. ...... अपीलाथ"/Appellant Pan: Aaach-5332-B बनाम Vs. Dy. Commissioner Of Income Tax – 8(3)(2), Room No.615, 6Th Floor, Aaykarbhavan, M.K.Road, ...... ""तवाद"/Respondent Mumbai – 400 020 Revenue By : S/Shrianand Mohan&Ajay K.R.Kesari Assessee By :S/Shri Salil Kapoor, Ketanved & Ms. Soumya Singh

For Appellant: S/Shri Salil Kapoor, KetanVed and Ms. Soumya SinghFor Respondent: S/ShriAnand Mohan&Ajay K.R.Kesari

Section 114Section 143(3)Section 263Section 801ASection 80I

Ground No.2 of the assessee’s appeal is thus allowed. 28. Ground No.3 of the appeal by the assessee reads as under:- “3. Interest under section 234B of the Act 3.1. On the facts and circumstances of the case and in law, the learned CIT(A) has erred ... holding that interest under section 234B of the Act cannot be levied for the period beyond the date of the original assessment order which was issued in 3rd September 2007”. 29. Charging of interest u/s. 234B of the Act is mandatory and consequential. We deem it appropriate to restore this

Vodafone India Ltd, Mumbai vs. DCIT 8(3)(2), Mumbai

In the result, appeal by the assessee is partly allowed in the terms aforesaid

ITA 5078/MUM/2017[2005-06]Status: DisposedITAT Mumbai28 Nov 2022AY 2005-06

For Appellant: S/Shri Salil Kapoor, KetanVed and Ms. Soumya SinghFor Respondent: S/ShriAnand Mohan&Ajay K.R.Kesari

Section 114Section 143(3)Section 263Section 801ASection 80I

M/S Infosys Limited, Bangalore vs. The Deputy Commissioner of Income Tax, Circle-3(1)(1), Bangalore

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

ITA 718/BANG/2017[2012-13]Status: DisposedITAT Bangalore28 Nov 2022AY 2012-13

Bench: Shri Chandra Poojaria & Smt. Beena Pillaiassessment Appeal No. Appellant Respondent Year M/S. Infosys Ltd., The Assistant Electronic City, Commissioner It(Tp)A No. Hosur Road, Of Income Tax, 2012-13 718/Bang/2017 Bangalore – 560 Circle – 100. 3(1)(1), Pan: Bangalore. Aaaci4798L : Shri Padamchand Khincha, Assessee By Ca : Shri K.V. Arvind & Shri Dilip, Revenue By Standing Counsels For Dept. Date Of Hearing : 15-09-2022 Date Of Pronouncement : 28-11-2022 Order Per Beena Pillaipresent Appeal Arises Out Of Final Assessment Order Dated 28/02/2017 Passed By The Ld.Acit, Circle – 3(1)(1), Bangalore For A.Y. 2012-13 On Following Grounds Of Appeal: General & Legal Grounds 1. The Order Passed By The Learned Assessing Officer & The Directions Of Hon’Ble Drp To The Extent Prejudicial To The Appellant Is Bad In Law & Liable To Be Quashed. Grounds On Denial Of Deduction Claimed Under Section 10Aa In Respect Of 4 Sez Units Viz., Chennai – Unit 1, Chandigarh, Mangalore - Unit 1 & Pune Unit 1 2. The Learned Assessing Officer Has Erred In Denying Deduction Claimed Under Section 10Aa In The Return Of Income Totally Amounting To Rs. 2227,82,65,630 In Respect

Section 10ASection 14ASection 2Section 2(24)Section 40

part of assessed tax. Grounds on Interest levied under section 234B and 234D 60. The learned assessing officer has erred in levying interest under section 234B and 234D. On the facts and in the circumstances of the case, interest under section 234B and 234D is not leviable. The appellant denies ... liability to pay interest under section 234B and 234D. Prayer 61. In view of the above and other grounds to be adduced at the time of hearing, the appellant prays that the DRP directions and the final assessment order passed by the learned AO be quashed or in the alternative

Sr Technics Switzerland Limited, Mumbai vs. ACIT (It)-4(2)(2), Mumbai

ITA 6616/MUM/2018[2015-16]Status: DisposedITAT Mumbai25 Nov 2022AY 2015-16

Bench: Shri Vikas Awasthy & Shri Gagan Goyals.R. Technics Switzerland Limited. C/O. B-206, Citipoint, A.K. Road, Andheri (East), Mumbai-400059. Pan: Aalcs3475M ...... Appellant Vs. Acit (International Taxation), Range- 4(2) (2), Mumbai-400020. ..... Respondent Appellant By : Sh. Dhanesh Bafna / Sh. Pratik Shah Respondent By : Ms. Surabhi Sharma, Cit-Dr Date Of Hearing : 29/08/2022 Date Of Pronouncement : 25/11/2022 Order Per Gagan Goyal, A.M: This Appeal By The Assessee Is Directed Against The Order Of Acit(It-4(2)(2), Mumbai, [Hereinafter Referred To As [‘Acit’] Dated 24.09.2018 Passed Under Section 143(3) Read With Section 144(C)(13) Of The Income Tax Act, 1961 (Hereinafter Referred To As [‘The Act’] For The Assessment Year (Ay) 2015-16. The Assessee Has Raised The Following Grounds Of Appeal:

For Appellant: Sh. Dhanesh Bafna / Sh. Pratik ShahFor Respondent: Ms. Surabhi Sharma, CIT-DR

Section 143(3)Section 144Section 234BSection 234CSection 234DSection 245Section 271(1)(c)Section 9(1)

facts and circumstances of the case and Rs. 10,46,424/- in law, the Ld. AO erred in computing consequential interest under Section 234B of the IT Act. 7. On the facts and circumstances of the case and Rs. 32,89,584/- in law, the Ld. AO erred in computing ... consequential interest under Section 234B of the IT Act. 8. On the facts and circumstances of the case and Rs. 23,068/- in law, the Ld. AO erred in computing interest under Section 234C of the IT Act of Rs. 4, 78,770 instead

Sri. Thayappa Balakrishna, Bangalore vs. The Assistant Commissioner of Income Tax, Circle- 8(1), Bangalore

In the result, the appeal filed by the assessee is dismissed

ITA 101/BANG/2020[2011-12]Status: DisposedITAT Bangalore22 Nov 2022AY 2011-12

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.Ravi Shankar, AdvocateFor Respondent: Sri.K.R.Narayan, Addl.CIT-DR

Section 143(2)Section 234BSection 250

cost of improvement of capital assets on the facts and circumstances of the case. 9. The appellant denies himself liable to pay interest under section 234B and 234C of the Act on the facts and circumstances of the case. 3 ITA No.101/Bang/2020. Sri.Thayappa Balakrishna. 10. The appellant craves leave

Global E-Business Operations Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-5(3)(2), Bangalore

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

ITA 174/BANG/2022[2017-18]Status: DisposedITAT Bangalore16 Nov 2022AY 2017-18

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri Padam Chand Khincha, A.RFor Respondent: Shri Harinder Kumar, D.R

Section 144(3)Section 37Section 92C

penalty proceedings under section 270A of the Act. 5.2. The Learned AO has erred, in law and on facts, in computing and levying interest under section 234B of the Act. 2. Ground Nos.1 to 1.9 are general in nature, which do not require adjudication. 2.1 Ground Nos.2 to 2.8, ground

Bhavnagri Halai Memon Jamat, Mumbai vs. Income Tax Officer (Exemption) 1(1), Mumbai

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

ITA 1676/MUM/2022[2012-13]Status: DisposedITAT Mumbai15 Nov 2022AY 2012-13

Bench: Shri Prashant Maharishi, Am & Shri Pavan Kumar Gadale, Jm Ito(Exemption)1(1) 6Th Floor, Cumballa Hill Bhavnagari Halai Memon Jamat Mtnl, Te Building, Peddar C/O Umer Hall Trust, Road, Dr. Gopalrao 11/13 Masjid Cross Lane, Vs. Mumbai- 400 003 Deshmukh Marg, Mumbai- 400 002 (Appellant) (Respondent) Pan No. Aaatb7848R Assessee By : Shri. Mudassir H. Deshmukh, Ca Revenue By : Shri. Chetan M. Kacha, Sr. Ar. Date Of Hearing: 14.11.2022 Date Of Pronouncement: 15.11.2022

For Appellant: Shri. Mudassir H. Deshmukh, CAFor Respondent: Shri. Chetan M. Kacha, Sr. AR

Section 11Section 12Section 12ASection 143(3)Section 147Section 148Section 234b

total income of ₹70,55,980/- and also Bhavnagari Halai Memon Jamat;A.Y. 2012-13 raised high pitch demand by levying the huge interest under section 234b 234C etc. As the appellant is registered u/s 12A of the Income Tax Act exemptions u/s 11 and 12 may be allowed. Copy

M/S United Breweries Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

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

ITA 481/BANG/2018[2012-13]Status: DisposedITAT Bangalore11 Nov 2022AY 2012-13

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.K.R.Vasudevan, AdvocateFor Respondent: Sri.K.Sankar Ganesh, JCIT –DR

Section 115JSection 143(2)Section 143(3)Section 14ASection 40Section 43B

decisions relied upon by the assessee 11. The learned CIT(A) has erred in confirming the action of the AO in levying interest under section 234B/ 234C of the Act. The Assessee submits that each of the above grounds is independent and without prejudice to one another. The Assessee craves

Travelex India P.Ltd, Mumbai vs. Asst CIT 13(3)(2), Mumbai

In the result the issue under consideration is remitted back to the file of Assessing Officer for statistical purpose

ITA 1214/MUM/2015[2010-11]Status: DisposedITAT Mumbai07 Nov 2022AY 2010-11

Bench: Shri Vikas Awasthy, Hon'Ble & Shri S. Rifaur Rahman, Hon'Ble

Section 144C(5)Section 92C

facts and circumstances of the case and in law, the Learned AO and Hon'ble DRP have erred in levying excess interest under section 234B and 234C of the Act. The Appellant prays that the Learned AO be directed to re- compute interest under section 234B and 234C

Cma Cgm Sa, Mumbai vs. Asstt CIT (International Taxationa)-2(1)(1), Mumbai

In the result, additional grounds of appeal filed by the assessee are allowed for statistical purpose

ITA 1013/MUM/2021[2017-18]Status: DisposedITAT Mumbai03 Nov 2022AY 2017-18

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nikhil TiwariFor Respondent: Shri Lovish Kumar

Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270ASection 44B

been compensated at arm's length and hence no further attribution could made towards Income of the Appellant liable to tax in India, Interest under section 234B of the Act 14. erred in levying interest under section 234B of INR 6,32,15,145/-; Initiation of penalty proceedings under section ... assessee and accordingly, allow grounds No. 11 – 13 raised in assessee‟s appeal. 24. Ground No. 14 pertains to levy of interest under section 234B of the Act, which is consequential in nature. Therefore, the said ground is allowed for statistical purpose. CMA CGM SA ITA No.1013/Mum./2021 25. Ground

M/S Jal Ratan Deep Co-Operative Housing Society, Mumbai vs. ITO Ward 31(2)(1), Mumbai

ITA 2351/MUM/2022[2020-21]Status: DisposedITAT Mumbai01 Nov 2022AY 2020-21

Bench: Shri Kuldip Singh ()

Section 1Section 115JSection 143Section 250Section 80Section 80P(2)(d)

facts and circumstances of the case, provisions of the Act and the Rules made thereunder. 8. Attracted Section-Section 234B&234C Issue - Levying Interest under section 234B & 234C is void ab initio. On the facts and in the circumstances of the case and in law, the CPC erred in charging

M/S Jal Ratan Deep Co-Operative Housing Society, Mumbai vs. ITO Ward 31(2)(1), Mumbai

ITA 2350/MUM/2022[2017-18]Status: DisposedITAT Mumbai01 Nov 2022AY 2017-18

Bench: Shri Kuldip Singh ()

Section 1Section 115JSection 143Section 250Section 80Section 80P(2)(d)

M/S Jal Ratan Deep Co-Operative Housing Society, Mumbai vs. ITO Ward 31(2)(1), Mumbai

ITA 2349/MUM/2022[2016-17]Status: DisposedITAT Mumbai01 Nov 2022AY 2016-17

Bench: Shri Kuldip Singh ()

Section 1Section 115JSection 143Section 250Section 80Section 80P(2)(d)