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“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
21
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
19
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
14
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
14
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
13
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
12
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
11
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

Kyocera Document Solutions Asia Ltd., (Formerly Known As Kyocera Mita Asia Limited), Hong Kong vs. ACIT, Circle International Tax 2(1)(2), Delhi

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

ITA 3546/DEL/2023[2021-22]Status: DisposedITAT Delhi13 Jan 2026AY 2021-22

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Nethrapal, CIT-DR
Section 143(3)

Kyocera Document Solutions Asia Vs. ACIT 32. Ground 4 regarding penalty u/s 270A is premature and ground 5 regarding interest u/s 234B is consequential. ITA No. 3546/DEL/2023 [A.Y 2021-22] ITA No. 1664/DEL/2025 [A.Y 2022-23] 33. The facts in the above appeals being identical, the decision rendered above

M/S Halcrow Group Ltd., New Delhi vs. DCIT (Interntional Taxation), New Delhi

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

ITA 1266/DEL/2017[2013-14]Status: DisposedITAT Delhi09 Jan 2026AY 2013-14

Bench: Shri Vikas Awasthy & Shri M. Balaganeshm/S. Halcrow Group Ltd, Vs. Dcit, R-27, 2Nd Floor, Pratap Circle-2(1)(1)- Market, Jangpura, B, New It, Delhi-110014 New Delhi (Appellant) (Respondent) Pan: Aaach7866E Assessee By : Shri Salil Kapoor, Adv Ms. Soumya Sigh, Adv Ms. Ananya Kapoor, Adv Revenue By: Ms. Ekta Jain, Cit Dr Date Of Hearing 03/12/2025 Date Of Pronouncement 09/01/2026

For Appellant: Shri Salil Kapoor, AdvFor Respondent: Ms. Ekta Jain, CIT DR
Section 144C(5)

Ground Nos. 3 to 6 raised by the assessee are allowed. 9. Ground No. 15 raised by the assessee challenging the levy of interest u/s 234B and 234D of the Act is consequential in nature. 10. Ground No. 16 raised by the assessee challenging the initiation of penalty proceedings u/s

Vk Warehousing Enterprises, Hyderabad vs. DCIT., Circle-6(1), Hyderabad

In the result, both the appeals filed by the assessee firm and the revenue are partly allowed for statistical purposes, in terms of our observations recorded hereinabove

ITA 737/HYD/2025[2017-18]Status: DisposedITAT Hyderabad07 Jan 2026AY 2017-18

Bench: Shri Manjunatha G & Shri Ravish Soodआ.अपी.सं /Ita No.737/Hyd/2025 (िनधा"रण वष"/Assessment Year:2017-18) M/S. V K Warehousing Enterprises, Dy. Commissioner Of Income Tax, Vs. Circle 6(1), Hyderabad. Hyderabad. Pan : Aakfv3288R (Appellant) (Respondent) आ.अपी.सं /Ita No.881/Hyd/2025 (िनधा"रण वष"/Assessment Year:2017-18) Dy. Commissioner Of Income Tax, M/S. V K Warehousing Enterprises, Circle 6(1), Hyderabad. Vs. Hyderabad. (Appellant) (Respondent) िनधा""रती "ारा/Assessee By: Shri Rajesh Vaishnav, C.A. राज" व "ारा/Revenue By: Shri P. Dhivahar, Cit-Dr सुनवाई की तारीख/Date Of Hearing: 22/12/2025 घोषणा की तारीख/Pronouncement: 07/01/2026

For Appellant: Shri Rajesh Vaishnav, C.AFor Respondent: Shri P. Dhivahar, CIT-DR
Section 143(2)Section 144Section 234BSection 271(1)(b)Section 40Section 69Section 69CSection 801B

capital expenditure amounting to INR 34,58,38,297. 8. The Hon’ble CIT(A) is erroneous in upholding the levy of interest u/s 234B and penaltyimposed u/s 271(1)(b) of the Act. 9. The Appellant respectfully seeks leave to submit additional factual and legal arguments during the proceedings

Oracle Systems Corporation, New Delhi vs. DDIT, New Delhi

In the result, assessee’s appeals in :

ITA 3313/DEL/2013[2005-06]Status: DisposedITAT Delhi02 Jan 2026AY 2005-06

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Ground No. 5 in A.Y. 2001-02 to 2004-05 & Ground No. 7 in A.Y. 2005-06], the ld AR stated that no interest u/s 234B of the Act is chargeable in case of the assessee for any shortfall in payment of advance tax up to A.Y. 2012-13, since ... assessee is that its income was subject to TDS obligations in hands of Indian payers. The AO is directed to charge interest u/s 234B of the Act as per law keeping in mind the decision of the hon’ble Supreme Court in the case of Director of Income

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1836/DEL/2009[2004-05]Status: DisposedITAT Delhi02 Jan 2026AY 2004-05

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Ground No. 5 in A.Y. 2001-02 to 2004-05 & Ground No. 7 in A.Y. 2005-06], the ld AR stated that no interest u/s 234B of the Act is chargeable in case of the assessee for any shortfall in payment of advance tax up to A.Y. 2012-13, since ... assessee is that its income was subject to TDS obligations in hands of Indian payers. The AO is directed to charge interest u/s 234B of the Act as per law keeping in mind the decision of the hon’ble Supreme Court in the case of Director of Income

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1835/DEL/2009[2003-04]Status: DisposedITAT Delhi02 Jan 2026AY 2003-04

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Ground No. 5 in A.Y. 2001-02 to 2004-05 & Ground No. 7 in A.Y. 2005-06], the ld AR stated that no interest u/s 234B of the Act is chargeable in case of the assessee for any shortfall in payment of advance tax up to A.Y. 2012-13, since ... assessee is that its income was subject to TDS obligations in hands of Indian payers. The AO is directed to charge interest u/s 234B of the Act as per law keeping in mind the decision of the hon’ble Supreme Court in the case of Director of Income

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1834/DEL/2009[2002-03]Status: DisposedITAT Delhi02 Jan 2026AY 2002-03

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Ground No. 5 in A.Y. 2001-02 to 2004-05 & Ground No. 7 in A.Y. 2005-06], the ld AR stated that no interest u/s 234B of the Act is chargeable in case of the assessee for any shortfall in payment of advance tax up to A.Y. 2012-13, since ... assessee is that its income was subject to TDS obligations in hands of Indian payers. The AO is directed to charge interest u/s 234B of the Act as per law keeping in mind the decision of the hon’ble Supreme Court in the case of Director of Income

Oracle Systems Corporation, New Delhi vs. ADIT, New Delhi

In the result, assessee’s appeals in :

ITA 1833/DEL/2009[2001-02]Status: DisposedITAT Delhi02 Jan 2026AY 2001-02

Bench: Shri Vikas Awasthy & Shri Naveen Chandra

For Appellant: Shri G.C. Srivastava, AdvFor Respondent: Shri Indruj Sngh Rai, Spl. Counsel
Section 234ASection 250(1)(a)Section 9(1)(vi)

Ground No. 5 in A.Y. 2001-02 to 2004-05 & Ground No. 7 in A.Y. 2005-06], the ld AR stated that no interest u/s 234B of the Act is chargeable in case of the assessee for any shortfall in payment of advance tax up to A.Y. 2012-13, since ... assessee is that its income was subject to TDS obligations in hands of Indian payers. The AO is directed to charge interest u/s 234B of the Act as per law keeping in mind the decision of the hon’ble Supreme Court in the case of Director of Income

Akshar Jewellers, Junagadh vs. Deputy / Assistant Commissioner of Income Tax, Rajkot

In the result, appeal filed by the assessee is allowed

ITA 535/RJT/2025[2023-24]Status: DisposedITAT Rajkot31 Dec 2025AY 2023-24

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinha

For Appellant: Shri Kalpesh Doshi, Ld. ARFor Respondent: Shri Sanjay Punglia, CIT-DR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 145(3)Section 234BSection 270A

wrongly confirmed initiation of penalty proceedings u/s 270A of the 1.T. Act, 1961. 5.That, the Ld. CIT(A) has wrongly charged interest u/s 234B and 234C of the LT. Act, 1961. 6.That, the findings of the Ld. CIT(A) are not justified and are bad-in-law. 7.The assessee

Schineler India Pvt Ltd, Mumbai vs. Dcitrg 15(3) (2), Mumbai

In the result, ground no. 6 raised by the assessee is allowed

ITA 724/MUM/2022[2017-18]Status: DisposedITAT Mumbai31 Dec 2025AY 2017-18

Bench: Shri Pawan Singh & Shri Girish Agrawalassessment Year: 2017-18 Schindler India Pvt Ltd Dcit Schindler House, Main Street, Range 15(3) (2) Hiranandani Gardens, Powai, Vs. Mumbai Mumbai - 400076 (Pan: Aaecs1548J) (Appellant) (Respondent) Present For: Assessee : Ms. Chandani Shah, Ms. Niddhi Agarwal & Ms. Riddhi Maru, Cas Revenue : Shri Ajay Chandra, Cit Dr Date Of Hearing : 08.10.2025 Date Of Pronouncement : 31.12.2025 O R D E R Per Girish Agrawal: This Appeal Filed By The Assessee Is Against The Final Assessment Order Passed By National Faceless Assessment Centre, Delhi (Nfac) Vide Order No. Itba/Ast/S/143(3)/2021-22/1040015716(1) Dated 22.02.2022 U/S. 143(3) R.W.S. 144C(13) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”) Pursuant To The Directions Of Ld. Dispute Resolution Panel-2, Mumbai, (Drp) Vide Order No. Itba/Drp/F/144C(5)/2021-22/1039079646(1), Dated 25.01.2022, Passed U/S. 144C(5), For Assessment Year 2017-18. 2. Grounds Taken By Assessee Are Reproduced As Under: “Ground I. Legal Grounds

For Appellant: Ms. Chandani Shah, Ms. Niddhi Agarwal and Ms. Riddhi Maru, CAsFor Respondent: Shri Ajay Chandra, CIT DR
Section 143(3)Section 144C(5)Section 92CSection 92C(3)

paid of Rs. 11,65,27,768/- be granted to the Appellant. 7 Schindler India Pvt Ltd. AY 2017-18 GROUND IX: INTEREST U/S 234B AND 234C OF THE ACT 5.1 On the facts and circumstances of the case and in law, the Ld. AO erred in computing the interest ... consequential effect thereto. Accordingly, ground no. 8 raised by the assessee is allowed. 11. Ground no. 9 is in respect of levy of interest u/s. 234B and 234C which are consequential in nature and, therefore, doesn’t need separate adjudication. 12. In the result, appeal of the assessee is partly

Vaibhav Das Mundhra, Kolkata vs. Assistant Director of Income Tax, CPC, Bangalore

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

ITA 35/KOL/2025[2021-2022]Status: DisposedITAT Kolkata29 Dec 2025AY 2021-2022

Bench: Shri Sonjoy Sarma & Shri Rakesh Mishra

Section 234BSection 234CSection 250Section 295(1)Section 90

facts and in the circumstances of the case, on the disposal of the appeal there will be reduction and/or deletion of interest u/s 234B of Rs. 83,844/-, hence necessary direction may please be given to the A.O. to modify the computation of interest u/s 234B. 9. That ... filed within the due date and the said return was processed u/s 143(1) of the Act with imposition of interest u/s 234B & 234C of the Act amounting to ₹83,844/- and ₹49,183/-, respectively. The assessee was a resident and ordinarily resident during the year and had credit

M/S Thdc India Limited, Rishikesh vs. PCIT, Dehradun

Appeal of the assessee is partly allowed

ITA 69/DDN/2024[2020-21]Status: DisposedITAT Dehradun24 Dec 2025AY 2020-21

Bench: Shri Yogesh Kumar U.S & Shri Manish Agarwal

Section 142(1)Section 143(2)Section 143(3)Section 234ASection 250Section 251(1)(a)Section 270ASection 80

Ground of appeal No.6 raised by the assessee is allowed. 26. Ground of appeal No.7 raised by the assessee is regarding charging of interest u/s 234B & 234C of the Act. 27. Heard the parties. The AO is directed to charge interest u/s 234B of the Act om the income computed

Kinkini, Bhilwara vs. ITO Exemption Ward 1, Jaipur

In the result, the appeal of the assessee is allowed

ITA 1185/JPR/2025[2023-24]Status: DisposedITAT Jaipur24 Dec 2025AY 2023-24

Bench: SMT. ANNAPURNA GUPTA (Accountant Member)

For Appellant: Sh.Mahendra Gargieya, AdvocateFor Respondent: Sh. Gautam Singh Choudhary
Section 11Section 11(1)Section 12ASection 143Section 143(1)Section 143(1)(a)Section 234BSection 250

full. 5. Rs. 91,894/-: The ld. AO further erred in law as well as on the facts of the case in charging interest u/s 234B and 234C of the Act. The appellant totally denies its liability of charging of any such interest. The interest so charged, being contrary

Nikhil Bector, Sarabha Nagar Ludhiana vs. DCIT, Cirlce-1, Ludhiana

In the result, appeal of the assessee is allowed

ITA 762/CHANDI/2025[2017-2018]Status: DisposedITAT Chandigarh24 Dec 2025AY 2017-2018

Bench: The Appeal Is Finally Heard & Disposed Off.

For Appellant: Shri Ashish Aggarwal, C.AFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 234BSection 69A

case the disallowance made is against the law and facts of the cases. 4. That the learned Assessing Officer has erred in charging interest u/s 234B, 234C and 234D of the Income Tax Act, 1961. 5. That the appellant craves to amend, alter, delete or supplement any ground of appeal

Sms Group Gmbh, Delhi vs. ACIT.Circle-3(1)(2), New Delhi

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

ITA 377/DEL/2025[2022-23]Status: DisposedITAT Delhi24 Dec 2025AY 2022-23

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

intranet, SAP are liable to tax in India as 'Fees for Technical Services'. 6. That the learned A.O./DRP has erred in levying interest u/s 234B of the Income-tax Act which provision is not applicable in case of non-resident company as held by the jurisdictional High Court ... made from the Bar and accordingly dismissed as not pressed. 16. Ground No. 9 raised by the assessee is challenging the chargeability of interest u/s 234B and 234C of the Act. The chargeability of interest u/s 234B of the Act is consequential in nature. With regard to interest u/s 234C

Sms Group Gmbh, New Delhi vs. ACIT, Circle 3(1)(2), International Txation, New Delhi

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

ITA 993/DEL/2023[2020-21]Status: DisposedITAT Delhi24 Dec 2025AY 2020-21

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

intranet, SAP are liable to tax in India as 'Fees for Technical Services'. 6. That the learned A.O./DRP has erred in levying interest u/s 234B of the Income-tax Act which provision is not applicable in case of non-resident company as held by the jurisdictional High Court ... made from the Bar and accordingly dismissed as not pressed. 16. Ground No. 9 raised by the assessee is challenging the chargeability of interest u/s 234B and 234C of the Act. The chargeability of interest u/s 234B of the Act is consequential in nature. With regard to interest u/s 234C

Sms Group Gmbh, New Delhi vs. ACIT Circle - 3(1)(2) Intl. Taxation, New Delhi

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

ITA 3297/DEL/2023[2021-22]Status: DisposedITAT Delhi24 Dec 2025AY 2021-22

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

intranet, SAP are liable to tax in India as 'Fees for Technical Services'. 6. That the learned A.O./DRP has erred in levying interest u/s 234B of the Income-tax Act which provision is not applicable in case of non-resident company as held by the jurisdictional High Court ... made from the Bar and accordingly dismissed as not pressed. 16. Ground No. 9 raised by the assessee is challenging the chargeability of interest u/s 234B and 234C of the Act. The chargeability of interest u/s 234B of the Act is consequential in nature. With regard to interest u/s 234C

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2) Int. Taxation, New Delhi

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

ITA 1592/DEL/2022[2018-19]Status: DisposedITAT Delhi24 Dec 2025AY 2018-19

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

intranet, SAP are liable to tax in India as 'Fees for Technical Services'. 6. That the learned A.O./DRP has erred in levying interest u/s 234B of the Income-tax Act which provision is not applicable in case of non-resident company as held by the jurisdictional High Court ... made from the Bar and accordingly dismissed as not pressed. 16. Ground No. 9 raised by the assessee is challenging the chargeability of interest u/s 234B and 234C of the Act. The chargeability of interest u/s 234B of the Act is consequential in nature. With regard to interest u/s 234C

Sms Group Gmbh, New Delhi vs. ACIT, Circle-3(1)(2), Int. Taxation, New Delhi

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

ITA 1591/DEL/2022[2017-18]Status: DisposedITAT Delhi24 Dec 2025AY 2017-18

Bench: Shri M. Balaganesh & Shri Vimal Kumar

For Appellant: Shri Percy Pardiwala, Sr. AdvFor Respondent: Shri M. S. Nethrapal, CIT DR
Section 143(3)Section 144C(5)

intranet, SAP are liable to tax in India as 'Fees for Technical Services'. 6. That the learned A.O./DRP has erred in levying interest u/s 234B of the Income-tax Act which provision is not applicable in case of non-resident company as held by the jurisdictional High Court ... made from the Bar and accordingly dismissed as not pressed. 16. Ground No. 9 raised by the assessee is challenging the chargeability of interest u/s 234B and 234C of the Act. The chargeability of interest u/s 234B of the Act is consequential in nature. With regard to interest u/s 234C

Ashok Chaturvedi, Delhi vs. DCIT, Central Circle-2, Noida

In the result, the appeal of the assessee is allowed

ITA 5156/DEL/2025[2021-22]Status: DisposedITAT Delhi23 Dec 2025AY 2021-22

Bench: Shri Vimal Kumar & Ms Renu Jauhriashok Kumar Chaturvedi, Vs. Dcit, 305, 3Rd Floor, Pamposh Central Circle-2, Enclave, Greater Kailash- Noida 1, New Delhi (Appellant) (Respondent) Pan: Aacpc1661P

For Appellant: Shri Vir Sain Agarwal, AdvFor Respondent: Ms. Ankush Kalra, Sr. DR
Section 139(1)Section 143(1)Section 234ASection 234A(1)Section 250(6)

paid on 29.01.2022 which included tax, interest of Rs. 6,05,753/- u/s 234A and interest u/s 234B and 234C of the Act. Thus, interest u/s 234A has been suo moto paid by the assessee till 29.10.2022. Therefore, the only dispute is with regard to the amount of interest chargeable