“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

DCIT, CC-7(2), Mumbai vs. M/S. Patanjali Foods Ltd., ( Formerly Known As Ruchi Soya Industries Ltd, Mumbai

In the result, the appeal and cross objections of the assessee are

ITA 1176/MUM/2023[2012-13]Status: DisposedITAT Mumbai05 Apr 2024AY 2012-13

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T. A. No. 1172/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2010-11) & आयकर अपील सं/ I.T. A. No. 1175/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2012-13) & आयकर अपील सं/ I.T. A. No. 1176/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2012-13) Dcit, Central Circle-7(2) Room No. 637, 6Th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400020. बनाम / M/S. Patanjali Foods Ltd Vs. (Formerly Known As Ruchi Soya Industries Ltd) 616, Tulsiani Chambers, Nariman Point, Mumbai- 400021. Cross Objection No.51/Mum/2023 (Arising Out Of I.T. A. No. 1172/Mum/2023) (निर्धारण वर्ष / Assessment Year: 2010-11) M/S. Patanjali Foods Ltd (Formerly Known As Ruchi Soya Industries Ltd) 616, Tulsiani Chambers, Nariman Point, Mumbai- 400021. बनाम / Dcit, Central Circle-7(2) Vs. Room No. 637, 6Th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400020. & आयकर अपील सं/ I.T. A. No. 320/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2012-13) M/S. Patanjali Foods Ltd (Formerly Known As Ruchi Soya Industries Ltd) बनाम / Vs. Dcit, Central Circle-7(2) Room No. 637, 6Th Floor, Aayakar Bhavan, M. K. Road, Mumbai-400020. 616, Tulsiani Chambers, Nariman Point, Mumbai- 400021. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaci1220M 2

For Appellant: Shri S. S. Nagar & Shri BFor Respondent: Dr. Mahesh Akhade (DR)

Section 132Section 143(2)Section 153A

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI S RIFAUR RAHMAN

DCIT, CC-7(2), Mumbai vs. M/S. Patanjali Foods Ltd., ( Formerly Known As Ruchi Soya Industries Ltd, Mumbai

ITA 1175/MUM/2023[2012-13]Status: DisposedITAT Mumbai05 Apr 2024AY 2012-13

For Appellant: Shri S. S. Nagar & Shri BFor Respondent: Dr. Mahesh Akhade (DR)

Section 132Section 143(2)Section 153A

case, after giving effect to the above additional ground, the tax would be payable under book profit u/s 115JB and hence provision of interest u/s 234B and 234C shall not be applicable in computing tax liability. 12.1 The issue in dispute in this ground relates to the liability ... advance tax and interest u/s 234B & 234C of the Act, in case the income is held to be chargeable to tax u/s 115JB of the Act. The Ld. CIT, DR, at the outset, contended that the Hon'ble Supreme Court in the case of JCIT vs Rolta India

DCIT, CC-7(2), Mumbai vs. M/S. Patanjali Foods Ltd., ( Formerly Known As Ruchi Soya Industries Ltd, Mumbai

In the result, the appeal and cross objections of the assessee are partly allowed and the appeals of the revenue are dismissed

ITA 1172/MUM/2023[2010-11]Status: DisposedITAT Mumbai05 Apr 2024AY 2010-11

Bench: Shri Aby T. Varkey, Jm & Shri S Rifaur Rahman, Am आयकर अपील सं/ I.T. A. No. 1172/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2010-11) & आयकर अपील सं/ I.T. A. No. 1175/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2012-13) & आयकर अपील सं/ I.T. A. No. 1176/Mum/2023 (निर्धारण वर्ा / Assessment Year: 2012-13)

For Appellant: Shri S. S. Nagar & Shri BFor Respondent: Dr. Mahesh Akhade (DR)

Section 132Section 143(2)Section 153A

IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, MUMBAI BEFORE SHRI ABY T. VARKEY, JM AND SHRI S RIFAUR RAHMAN

Superwell Services Private Limited, New Delhi vs. ACIT Circle 22(2), New Delhi

In the result, the appeal of the assessee is dismissed

ITA 298/DEL/2024[2021-22]Status: DisposedITAT Delhi02 Apr 2024AY 2021-22

Bench: Dr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Sh. Om Parkash, Sr. DR

Section 143(1)Section 2(24)(x)Section 234BSection 36(1)(va)Section 43Section 43B

before the due date of filing the return of income as deductible. 6. The learned assessing office has erred in levying the interest u/s 234B & 234C of the Income Tax Act, 1961.” 3. The issue of ESI/PF payment has attained finality by the order of the Hon’ble Supreme Court

Mariamma Joseph, Kottayamn vs. The ACIT, Central Circle, Kottayam

In the result, the assessee’s appeal is decided on the aforesaid terms

ITA 672/COCH/2022[2010-2011]Status: DisposedITAT Cochin28 Mar 2024AY 2010-2011

Bench: Shri Sanjay Arora & Shri Manomohan Dasmariamma Joseph Asst. Cit, Central Circle Hotel Floral Park Kottayam 686001 Gandhinagar Vs. Kottayam 686008 [Pan:Accpj9135F] (Appellant) (Respondent)

For Appellant: Shri Mathew Joseph, CAFor Respondent: Smt. J.M. Jamuna Devi, Sr. D.R

Section 143Section 143(1)Section 143(3)Section 153ASection 154Section 208Section 210Section 234Section 234BSection 234B(3)

admitting tax liability of Rs. 2,28,114, stood processed, or deemed to be so, in October, 2010, or latest by March, 2012. Interest u/s. 234B(3), which is to be for the period following the date of processing up to the date of reassessment or, as Mariamma Joseph ... March, 2013 and, thus, for a period of 36 months; the relevant part of his order reading as: ‘Further, regarding the calculation of interest u/s 234B(3), it may be noted that as per the provisions of section 2348(3), the interest is calculated on the amount by which

Laxmikant Tak, Panchsheel Ajmer vs. DCIT Circle -2 Ajmer, Jaipur Road Ajmer

In the result, appeal of the assessee is partly allowed

ITA 110/JPR/2024[2017-18]Status: DisposedITAT Jaipur28 Mar 2024AY 2017-18

For Appellant: Sh. C. M. AgarwalFor Respondent: Smt. Monisha Chaudhary (Addl.CIT)

Section 142(1)Section 143(2)Section 143(3)Section 145(3)

higher estimation of turnover is deleted. The Ground of Appeal is Allowed. 11. Ground No. 5: This ground is against the levy of interest u/s 234B of the Act. The levy of interest is consequential, and hencethis ground does not require adjudication. 12. Resultantly, the appeal preferred by the appellant

Microsoft India (R&D) Private Limited, New Delhi vs. DCIT, Circle-16(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1640/DEL/2022[2018-19]Status: DisposedITAT Delhi28 Mar 2024AY 2018-19

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Nageswar Rao & Parth, AdvFor Respondent: Shri Rajesh Kumar, CIT(DR)

Section 143(1)Section 143(3)Section 144BSection 144C(13)Section 270ASection 36(1)Section 40Section 56

That on the facts and in law, on disposal of this appeal material adjustment would be required in computing total income, tax, interest u/s 234B of the Act. Necessary directions may please be given to the Ld. AO in this regard. Page 9 of 12 ITA nos.- 1483 & 1640/Del/2022 Microsoft

Microsoft India (R&D) P.Ltd, New Delhi vs. DCIT, Circle-16(1), New Delhi

In the result, appeal of the assessee is partly allowed

ITA 1483/DEL/2022[2017-18]Status: DisposedITAT Delhi28 Mar 2024AY 2017-18

Bench: Shri N.K. Billaiya & Ms Astha Chandra

For Appellant: Shri Nageswar Rao & Parth, AdvFor Respondent: Shri Rajesh Kumar, CIT(DR)

Section 143(1)Section 143(3)Section 144BSection 144C(13)Section 270ASection 36(1)Section 40Section 56

Chimera Industrial and Development Private Limited, Mumbai vs. Commissioner of Income Tax (Appeals)-NFAC, Mumbai

In the result, both the appeals of the assessee are allowed in the terms

ITA 2332/MUM/2023[2017-18]Status: DisposedITAT Mumbai19 Mar 2024AY 2017-18

Bench: Justice (Retd.) C.V. Bhadang () & Shri B.R. Baskaran (Am)

For Appellant: a) Disallowance of depreciation on goodwill

Section 143(3)Section 147Section 234B

examining it afresh in accordance with the law. 8. The next issue urged by the assessee relates to the computation of interest u/s 234B. According to the assessee, there is an error in the computation. Since this issue also require examination at the end of AO, we set aside

Chimera Industrial and Development Private Limited, Mumbai vs. Commissioner of Income Tax (Appeals)-NFAC, Mumbai

ITA 2331/MUM/2023[2016-2017]Status: DisposedITAT Mumbai19 Mar 2024AY 2016-2017

Bench: Justice (Retd.) C.V. Bhadang () & Shri B.R. Baskaran (Am)

For Appellant: a) Disallowance of depreciation on goodwill

Section 143(3)Section 147Section 234B

Chimera Industrial & Development Pvt. Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “C” Bench, Mumbai. Before Justice (Retd.) C.V. Bhadang

Viswaat Chemicals Limited, Mumbai vs. CIT(A)-54, Earnest House

In the result, original grounds no

ITA 3494/MUM/2023[2018-19]Status: DisposedITAT Mumbai15 Mar 2024AY 2018-19

Bench: Shri Pavan Kumar Gadale & Shri Gagan Goyalviswaat Chemicals Limited, 909/910 Eco Star, Vishweshwar Nagar, Behind Udupi Vihae Hotel, Mumbai-400 063 Pan: Aaacv4184B ...... Appellant Vs. Dcit Cen. Cir. 6(3), 102, 1St Floor, Earnest House, Ncpa Marg, Nariman Point Mumbai- 400021 ..... Respondent

For Appellant: Shri Ronak Doshi, Ld. ARFor Respondent: Ms. Rajeshwari Menon, Ld. DR

Section 234BSection 250Section 28Section 35Section 35(1)Section 35(1)(i)Section 37

GROUND NO. IV: On facts and circumstances of the case and in the law, the Ld. A.O. has erred in calculating the interest u/s 234B of the Act. The appellant prays that the addition of such interest may please be deleted. V. GROUND NO. V: The appellant craves leave

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

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

ITA 885/DEL/2023[2017-18]Status: DisposedITAT Delhi13 Mar 2024AY 2017-18

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR

Section 143(3)Section 144C(13)

Ground No. 11 raised by the assessee is allowed. 28. Ground No. 18 raised by the assessee is challenging the levy of interest u/s 234B and 234D of the Act on the ground that the buyer has deducted tax at source and remitted to the account of the Central Govt ... have heard the rival contentions and perused the record. The AO while computing the income in the hands of the assessee has charged interest u/s 234B of the Act at Rs.39.46 crores (approx.). The assessee is aggrieved by the aforesaid charging of the interest. The case of the assessee

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle International Tax 3(1)(1), New Delhi

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

ITA 884/DEL/2023[2016-17]Status: DisposedITAT Delhi13 Mar 2024AY 2016-17

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR

Section 143(3)Section 144C(13)

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle Intl. Taxation 3(1)(1), New Delhi

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

ITA 2240/DEL/2023[2020-21]Status: DisposedITAT Delhi13 Mar 2024AY 2020-21

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR

Section 143(3)Section 144C(13)

Uk Grid Solutions Limited, United Kingdom vs. DCIT Circle Intl. Taxation 3(1)(1), New Delhi

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

ITA 2239/DEL/2023[2015-16]Status: DisposedITAT Delhi13 Mar 2024AY 2015-16

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vizay B. Vasanta, CIT DR

Section 143(3)Section 144C(13)

Spi Global Us Inc, Usa vs. DCIT International Taxation Circle 3(1)(2), New Delhi

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

ITA 1912/DEL/2023[2020-2021]Status: DisposedITAT Delhi13 Mar 2024AY 2020-2021

Bench: SHRI SHAMIM YAHYA (Accountant Member), SHRI YOGESH KUMAR U.S. (Judicial Member)

Section 143(3)Section 144Section 144CSection 9

assessee is partly allowed for statistical purposes. 13. The Ld. Counsel for the assessee addressing ground No.5.2 which is regarding levying of interest u/s 234B of the Act, submitted that while computing the assessed income and the tax thereon, interest u/s 234B of the Act amounting to Rs.18 ... file of A.O. for re-computing. Considering the submission made by the AR, we deem it fit to remand the issue of levying interest u/s 234B of the Act to the file of the AO to verify and re-compute the assessed income and the tax thereon in accordance with

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

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

ITA 2086/DEL/2022[2019-20]Status: DisposedITAT Delhi13 Mar 2024AY 2019-20

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv

Section 143(3)Section 144C(13)Section 40Section 44B

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH

Ge Hydro France, New Delhi vs. DCIT, Circle-1(3)(1), International Taxation, New Delhi

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

ITA 2085/DEL/2022[2018-19]Status: DisposedITAT Delhi13 Mar 2024AY 2018-19

Bench: Shri C. N. Prasad & Shri M. Balaganesh

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Aditya Vohra, Adv

Section 143(3)Section 144C(13)Section 40Section 44B

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “D”: NEW DELHI BEFORE SHRI C. N. PRASAD, JUDICIAL MEMBER AND SHRI M. BALAGANESH

Cadence Design Systems (India) Private Limited, Noida vs. DCIT, Circle 4(2), Delhi

In the result, the appeal of the assessee is partly allowed

ITA 1489/DEL/2023[2018-19]Status: DisposedITAT Delhi12 Mar 2024AY 2018-19

Bench: Shri M. Balaganesh & Shri Yogesh Kumar Uscadence Design System (India) Vs. Dcit, Pvt. Ltd, Circle-4(2), Plot Nos. 57A, B & C, Noida Delhi Special Economic Zone, Noida (Appellant) (Respondent) Pan: Aaacc1138Q Assessee By : Shri Salil Kapoor, Adv Shri Vibhu Jain, Adv Revenue By: Shri Vivek Kumar Upadhyay, Sr. Dr Date Of Hearing 18/12/2023 Date Of Pronouncement 12/03/2024

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Shri Vivek Kumar Upadhyay, Sr. DR

Section 115Section 143(3)Section 194Section 234BSection 250Section 274Section 40

raised by the assessee are dismissed. 6. The Ground No. 5 raised by the assessee is regarding chargeability of interest u/s 234B and 234C of the Act, which is consequential in nature. 7. The Ground No. 6 raised by the assessee is regarding initiation of penalty proceedings u/s 270A

Pradeep Kumar, Noida vs. ITO, Ward-2(4), Noida

In the result, the appeal of the assessee stands allowed for

ITA 1395/DEL/2023[2011-12]Status: DisposedITAT Delhi12 Mar 2024AY 2011-12

Bench: Shri Shamim Yahya & Shri Yogesh Kumar Us[Assessment Year: 2011-12]

Section 147Section 148Section 148(2)Section 151Section 234BSection 251

Learned Commissioner of Income Tax (Appeals) erred in law and on facts in upholding the action of the Ld. Assessing Officer charging interest u/s 234B of the Income Tax Act, 1961.” 3. At the outset, in this case, it is noted that pursuant to Assessing Officer’s order, the assessee