“interest u/s 234B”

InterestSection 234BSection 234B1,217 judgments

The decision most relied on for interest u/s 234B is DIT v. NGC Network Asia LLC (313 ITR 187), cited in 144 judgments on BharatTax.

Leading authorities on interest u/s 234B

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.

CIT v. Ranchi Club Ltd.

247 ITR 209 · 2001 · Supreme Court

citing judgments

Interest under sections 234A and 234B cannot be levied mechanically when there is a reasonable cause for delay in payment or response to notices.

27th Nov., 2001 and Sedco Forex International Drilling Inc. v. Dy. CIT

72 ITD 415 · 2000 · ITAT

citing judgments

Interest under section 234B is not leviable if the entire income of the assessee is liable to tax deduction at source, irrespective of whether tax was actually deducted.

ACIT v. Hans Raj Gandhi

37 ITR 418 · Reported

citing judgments

An assessee is entitled to the adjustment of seized cash against their advance tax liability. Consequently, no interest under sections 234A or 234B can be charged if the department fails to respond to the assessee's request for such an adjustment.

MBG Commodities (P.) Ltd. v. DCIT

163 ITD 130 · 2017 · ITAT

citing judgments

Interest under section 234B needs to be recalculated, affording the assessee a reasonable opportunity of hearing and considering judicial decisions.

CIT vs. Halliburton Offshore Services Inc. (2004) and CIT v. Reading and Bates Exploration Co.

278 ITR 47 · Reported

citing judgments

Interest under section 234 cannot be levied if the employer fails to deduct tax at source, as the employee should not be faulted for the employer's default.

Spice Infotainment v. Commissioner of Income

18 SCC 353 · 2020 · Reported

citing judgments

An assessment made in the name of a company that has been amalgamated and dissolved is null and void.

Entertainment Ltd. v. Commr. of Service Tar, (2011 SCC OnLine Del), CIT v. Dimension Apparels (P) Ltd.

2014 SCC OnLine DEL 7678 · 2014 · Reported

citing judgments

The court does not interfere with impugned judgments previously passed by the High Court in cases dealing with various aspects of income tax law.

Judgments citing interest u/s 234B

Rajeswar Thakur, Bhawanipatna vs. Asst. Commissioner of Income Tax, Circle -1(1), Sambalpur

ITA 144/CTK/2025[2014-15]Status: DisposedITAT Cuttack21 Jul 2025AY 2014-15

Bench: Shri George Mathan & Shri Rajesh Kumarआयकर अपील सं/Ita No.143 & 144/Ctk/2025 (निर्धारण वर्ष / Assessment Years : 2012-2013 & 2014-2015) Rajeswar Thakur Pardeshpada, Near Balaji Temple Bhawanipatna, Kalahandi-766001 Vs Acit, Circle-1(1), Sambalpur Pan No. :Aaspt 7155 M (अपीलार्थी / Appellant) (प्रत्यर्थी / Respondent) निर्धारिती की ओर से /Assessee By : Shri S.K.Agrawalla, Ca राजस्व की ओर से /Revenue By : Shri Nishant Rao B, Sr. Dr सुनवाई की तारीख / Date Of Hearing : 21/07/2025 घोषणा की तारीख/Date Of Pronouncement : 21/07/2025 आदेश / Order Per Bench : These Two Appeals Filed By The Assessee Against The Order Of The Id. Cit(A), National Faceless Appeal Centre (Nfac), Delhi, Both Dated 27.12.2024 For Assessment Years 2012-2013 & 2014-2015.

For Appellant: Shri S.K.Agrawalla, CAFor Respondent: Shri Nishant Rao B, Sr. DR

Section 139Section 142Section 143Section 143(3)Section 148Section 234BSection 234CSection 288A

CALCULATION. Tax on total income: Rs. 7,52,076/- Add: EC & HSEC @ 3% Rs. 22,562/- Total Tax Rs. 7,74,638/- Add: Interest u/s 234B Rs. 43088/- Add: Interest u/s 234C Rs. 9453/- Total tax and interest payable Rs. 8,27,179/- Less: Prepaid Taxes

Victory Realtech Pvt. Ltd., New Delhi vs. DCIT, New Delhi

ITA 5534/DEL/2015[2010-11]Status: DisposedITAT Delhi21 Jul 2025AY 2010-11

Bench: Shri Anubhav Sharma & Shri Avdhesh Kumar Mishra

Section 139(1)Section 143(1)Section 143(3)Section 147Section 148Section 234B

Assessing Officer is totally perverse and arbitrarily and hence not sustainable in the law 6. That levying the interest u/s 234B & 234C is not in accordance with the law. 7. That the appellant craves leave to add, amend or alter any of the grounds of the appeal.” 2 ITA No.5534/Del/2015

Sanjaykumar Arvindbhai Rupareliya L/H Arvindbhai Balubhai Rupareliya, Surat vs. ITO, Ward 3(1)(2), Surat

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

ITA 1305/SRT/2024[2015-16]Status: DisposedITAT Surat18 Jul 2025AY 2015-16

Bench: MS SUCHITRA RAGHUNATH KAMBLE (Judicial Member), SHRI BIJAYANANDA PRUSETH (Accountant Member)

Section 143(3)Section 234BSection 250Section 54B

well as the law on the subject, the Learned Commissioner(A) has erred in confirming the action of the Assessing Officer in levying interest u/s 234B and 234C. 3. It is therefore prayed that the above penalty may please be deleted as learned members of the Tribunal may deem

ITO-19(2)(4), Mumbai vs. Patdiam Jewels, Mumbai

In the result, the appeal filed by the Revenue Department stands dismissed

ITA 1/MUM/2025[2018-19]Status: DisposedITAT Mumbai18 Jul 2025AY 2018-19

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarassessment Year: 2018-19

For Appellant: Shri Vimal Punmiya, Ld. A.RFor Respondent: Shri Mahesh Pamnani, Ld. D.R

Section 10ASection 142(1)Section 250

10AA @ 50%) as per provisions of section 115BBE of the Act as the addition has been made u/s 69 of the Act. Charge interest u/s 234B & 234C of the I.T. Act, 1961 as per rule. Issue penalty notice u/s 271AAC of the Income Tax Act, 1961 as discussed above

Samsung Sdi India Pvt Ltd., Noida vs. DCIT, Circle-5(2)(1), Noida

In the result, appeal of the assessee is partly allowed

ITA 5475/DEL/2024[2021-22]Status: DisposedITAT Delhi18 Jul 2025AY 2021-22

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

Section 143(1)Section 143(3)Section 92C

raised by the assessee is partly allowed for statistical purposes. 30. Ground No.7 raised by the assessee is with respect to levy of interest u/s 234B of the Act which is consequential in nature and AO is directed to charge interest on income finally computed after giving effect

Samsung Sdi India Pvt Ltd, Noida vs. Assessment Unit, Income-Tax Department, National Faceless Assessment Centre New Delhi, New Delhi

ITA 3472/DEL/2024[2020-21]Status: DisposedITAT Delhi18 Jul 2025AY 2020-21

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

Section 143(1)Section 143(3)Section 92C

ITA No.3472 & 5475/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “I” BENCH: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL

Jubilant Foodworks Ltd, Noida vs. ACIT, Circle, 5(1)(1)., Gautam Buddha Nager

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

ITA 2310/DEL/2022[2018-19]Status: DisposedITAT Delhi16 Jul 2025AY 2018-19

Bench: Shri Challa Nagendra Prasad & Shri Manish Agarwal

Section 143(2)Section 143(3)Section 144(1)Section 144CSection 144C(13)Section 144C(5)Section 924ASection 928Section 92CSection 92F

facts and in the circumstances of the case and in law, the Ld. AO has erred in levying interest u/s 234B,234C and 234D of the Act. 12. On the facts and in the circumstances of the case and in law, the Ld. AO has erred in initiating penalty proceedings

Bklg Vendors Private Limited, Jaipur vs. ITO Ward 1(4) Jaipur, Jaipur Rajasthan

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

ITA 415/JPR/2025[2022-23]Status: DisposedITAT Jaipur15 Jul 2025AY 2022-23

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Deepak Sharma,CA (Thru” V.C.)For Respondent: Mrs. Anita Rinesh, JCIT-DR

Section 144Section 234BSection 68

disallowances be deleted in full. 7. The Id. AO erred in law as well as on the facts of the case in charging interest u/s 234B & 234C The appellant totally denies it liability of charging of any such interest. The interest, so charged, being contrary to the provisions

Railwaymens Cooperative Credit Society, Vadodara, Gujarat vs. Deputy Commissioner of Income Tax Circle 2(1)(1), Vadodara, Gujarat

In the result, both the appeals of the assessee are

ITA 1144/AHD/2025[2020-21]Status: DisposedITAT Ahmedabad15 Jul 2025AY 2020-21

Bench: Dr. Brr Kumar & Ms. Suchitra Kamble

For Appellant: Ms. Amrin Pathan, A.RFor Respondent: Shri Suresh Chand Meena, Sr. D.R

Section 234BSection 270ASection 56Section 80PSection 80P(2)(a)Section 8O

Other Grounds: 10. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in levying interest u/s 234B of the Act. 11. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in initiating ... Other Grounds: 10. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in levying interest u/s 234B of the Act. 11. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in initiating

Railwaymens Cooperative Credit Society, Vadodara, Gujarat vs. Deputy Commissioner of Income Tax Circle 2(1)(1), Vadodara, Gujarat

In the result, both the appeals of the assessee are

ITA 1143/AHD/2025[2018-19]Status: DisposedITAT Ahmedabad15 Jul 2025AY 2018-19

Bench: Dr. Brr Kumar & Ms. Suchitra Kamble

For Appellant: Ms. Amrin Pathan, A.RFor Respondent: Shri Suresh Chand Meena, Sr. D.R

Section 234BSection 270ASection 56Section 80PSection 80P(2)(a)Section 8O

Other Grounds: 10. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in levying interest u/s 234B of the Act. 11. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in initiating ... heard. Other Grounds: 10. The learned CITA) erred in fact and in law in confirming the action of the learned AO in levying interest u/s 234B of the Act. 11. The learned CIT(A) erred in fact and in law in confirming the action of the learned AO in initiating

Jurimatrix Services India Private Limited, Bengaluru vs. Assistant Commissioner of Income Tax, Circle 4(3)(1), Bengaluru

ITA 92/BANG/2025[2018-19]Status: DisposedITAT Bangalore15 Jul 2025AY 2018-19

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Sri K.R. Girish, A.RFor Respondent: Ms. Neha Sahay, D.R

Section 10ASection 115JSection 144Section 156Section 234ASection 234BSection 263Section 270A

timeline. 6. On the facts and circumstances of the case as well as in the law, Ld. AO has erred in computation of interest u/s 234B and 234C of the Act. 7. The Ld AO has erred on facts and circumstances of the case and in law by initiating penalty

Singal and Sons Construction Pvt Ltd, Delhi vs. ITO Ward - 4, Hisar

In the result, ground raised by the assessee is partly allowed

ITA 264/DEL/2024[2017-18]Status: DisposedITAT Delhi10 Jul 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri S. Rifaur Rahmansingal & Sons Construction Pvt. Ltd., Vs. Ito, Ward 4, Behind Sbi Main Branch, Hisar. Delhi Road, Hisar – 125 001 (Haryana). (Pan : Aaccs0362C) (Appellant) (Respondent) Assessee By : Shri Pranav Yadav, Advocate Revenue By : Shri Manish Gupta, Sr. Dr Date Of Hearing : 10.07.2025 Date Of Order : 10.07.2025 O R D E R Per S. Rifaur Rahman: 1. This Appeal Is Filed By The Assessee Against The Order Of The Ld. Commissioner Of Income-Tax (Appeals)/National Faceless Appeal Centre (Nfac), Delhi (For Short ‘Ld. Cit (A)) Dated 06.11.2023 For The Assessment Year 2017-18. 2. Brief Facts Of The Case Are, Assessee Filed Its Return Of Income Declaring Income Of Rs.5,90,940/- On 29.10.2017 For The Ay 2017-18. The Case Was Selected For Complete Scrutiny Through Cass. Accordingly, Notices

For Appellant: Shri Pranav Yadav, AdvocateFor Respondent: Shri Manish Gupta, Sr. DR

Section 143(2)Section 145(3)Section 41(1)Section 43B

returned by appellant. 7. On the facts and circumstances of the case and in law, the assessing officer erred in charging Interest u/s 234B and u/s 234D of the Act. 8. On the facts and circumstances of the case and in law, the assessing officer erred in initiating penalty proceedings

Lupin Investments Private Limited (Successor to Zyma Laboratories Limited), Mumbai vs. Deputy Commissioner of Income Tax - 14(2)(1), Mumbai

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

ITA 4635/MUM/2024[2016-17]Status: DisposedITAT Mumbai09 Jul 2025AY 2016-17

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

For Appellant: Shri P.J. Pardiwalla, Shri Pratik PoddarFor Respondent: Shri Rajesh Kumar Yadav, CIT, D/R

Section 115QSection 142(1)Section 143(2)Section 143(3)Section 234BSection 250Section 35ASection 56(2)(viia)Section 80G

heard to the assessee. Ground Nos.3 & 4 taken together are allowed for statistical purposes. 13. Ground No. 5 relates to the charging of interest u/s 234B of the Act. Levy of interest is mandatory but consequential. Therefore, the AO is directed to charge interest as per the relevant provisions

M/S. A & A Accessories, New Delhi vs. ACIT, New Delhi

Appeal of the assessee is dismissed

ITA 2614/DEL/2017[2005-06]Status: DisposedITAT Delhi09 Jul 2025AY 2005-06

Bench: Shri S Rifaur Rahman & Shri Sudhir Pareek

For Appellant: NoneFor Respondent: Sh. Harpreet Kaur Hansra, Sr. DR

Section 143(3)Section 234B

/Del/2017 M/s A & A Accessories years and in any case cannot form part of income of the current assessment year. 17. That the interest u/s 234B has been wrongly and illegally charged as the appellant could not have foreseen the additions and disallowances as there is no default of advance

Sanjaykumar Rameshbhai Mali, Vadodara vs. The ITO, Ward-1(2)(5), Vadodara

In the result, the appeal of the assessee is allowed

ITA 508/AHD/2025[2012-13]Status: DisposedITAT Ahmedabad08 Jul 2025AY 2012-13

Bench: Dr. Brr Kumar & Ms. Suchitra Kambleassessment Year 2012-13

For Appellant: Ms. Kinjal Shah, A.RFor Respondent: Shri Suresh Chand Meena, Sr. D.R

Section 147Section 148Section 208Section 234Section 234ASection 234B

Interest of Rs 36,366 u/s 234A is not chargeable and also is not correctly worked out. 3. Your Appellant also submits hat Interest u/s 234B is also not chargeable since your Appellant was not liable to pay Advance Tax u/s. 208 of the Act and hence there

Anil Kumar Manrai, Mumbai vs. Assistant Commissioner of Income Tax Circle 22(1), Mumbai

In the result, appeal of the assessee is dismissed

ITA 1419/MUM/2025[2012-13]Status: DisposedITAT Mumbai07 Jul 2025AY 2012-13

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

For Appellant: Shri Nikhil Porwal, A/RsFor Respondent: Shri Aditya M. Rai, Sr. D/R

Section 143(2)Section 144Section 148Section 149Section 234B

issuance of valid notice u/s 143(2) and 142(1) as per Rule 127. 2. The Learned Appellant Officer erred in levying interest u/s 234B & 234C. 3. The Appellant craves leave to alter, amend or add to any of the above grounds." 3. Briefly stated, the facts of the case

Amadeus It Group Sa, Delhi vs. Deputy Commissioner of Income-Tax, Civic Center

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

ITA 1494/DEL/2025[2022-23]Status: DisposedITAT Delhi04 Jul 2025AY 2022-23

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Neeraj Jain, AdvFor Respondent: Ms. Anjula Jain, CIT- DR

Section 143(2)Section 143(3)Section 44DSection 9(1)(vi)

considered view that the issue of attribution has attained finality. Ground No. 5 is accordingly dismissed. 23. Ground No. 6 pertains to interest u/s 234B of the Act. Page 10 of 13 ITA No. 1494/DEL/2025 [A.Y 2022-23] Amadeus IT Group SA Vs.The Dy. C.I.T 24. At the very outset ... advance tax since tax is deductible at source of the income of the taxpayer held liable to tax in India, the levy of interest u/s 234B is not warranted. 34. Provisions contained below section 209(1)(d) of the Act introduced by Finance Act, 2012 wef 01.04.2012 would apply only

K.R.Pulp and Papers Ltd., Delhi vs. ACIT, Central Circle-19, Delhi

ITA 4456/DEL/2024[2020-21]Status: DisposedITAT Delhi04 Jul 2025AY 2020-21

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 143(2)Section 143(3)Section 144CSection 144C(5)Section 80ISection 92C

ITA Nos.755/Del/2022 & 4456/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “H” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER

K R Pulp and Papers Ltd., Delhi vs. DCIT Central Circle-19, Delhi

ITA 755/DEL/2022[2017-18]Status: DisposedITAT Delhi04 Jul 2025AY 2017-18

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 143(2)Section 143(3)Section 144CSection 144C(5)Section 801ASection 801A(4)(iv)Section 80ISection 92C

ITA Nos.755/Del/2022 & 4456/Del/2024 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “H” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER

Thermodyne Dynamics Private Limited, Hyderabad vs. Income-Tax Officer, Ward -17(3), Hyderabad

ITA 500/HYD/2024[2013-2014]Status: DisposedITAT Hyderabad03 Jul 2025AY 2013-2014

Bench: Us :

For Appellant: Shri Pawan KumarFor Respondent: Shri B. Balakrishna -CIT-

Section 11USection 143(2)Section 143(3)Section 14ASection 234BSection 56

partly allowed in terms of our aforesaid observations. 27. Although the assessee company has assailed its liability towards payment of interest u/s 234B and 234C of the Act, we are afraid that considering the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Anjum M.H Ghaswala