“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

Dhritiman Roy, Bangalore vs. Income Tax Officer, Ward-4(2)(1), Bengaluru

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

ITA 542/BANG/2025[2019-20]Status: DisposedITAT Bangalore11 Sept 2025AY 2019-20

Bench: Shri Waseem Ahmed & Shri Keshav Dubey

For Appellant: Shri S.P. Chidambaram, ARFor Respondent: Shri Ganesh R. Ghale, Standing Counsel for Revenue

Section 139(1)Section 139(5)Section 143(1)Section 234CSection 250Section 90

claimed u/s 90 of the Act amounting to Rs.7,83,371/- as a result of which the demand of Rs.10,06,600/- including interest u/s 234B & 234C was raised. The ld. Addl. JCIT(A) by holding that the word “shall” has been used in the Rule

Godrej Projects North Star LLP, Mumbai vs. Deputy Commissioner of Income Tax Circle41(2)(1), Mumbai

Appeal of the assessee is allowed

ITA 4258/MUM/2025[2024-25]Status: DisposedITAT Mumbai10 Sept 2025AY 2024-25

Bench: Ms Padmavathy S, Am & Shri Raj Kumar Chauhan, Jm

Section 140Section 140ASection 143Section 143(1)Section 234ASection 234BSection 234B(2)Section 250Section 39Section 94

find merit in the contentions of the Authorized Representative. The appellant paid total self assessment tax of Rs.2,22,38,841/- including interest u/s 234B and 234C. The self assessment tax paid by the appellant was a sum of Rs.1,84,88,928/- The Assessing Officer did not appreciate ... amount of Tax Deducted or collected at source. This definition of the "assessed tax" is for the purpose of computation of interest u/s 234B at the time of filing of the return. The finance Act, 2001 clarified that for the purpose of computation of interest u/s.234B, the returned income becomes

Jai Mohan Singh, Mumbai vs. Income Tax Officer, Kautilya Bhavan, Mumbai

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

ITA 4072/MUM/2025[2017-18]Status: DisposedITAT Mumbai10 Sept 2025AY 2017-18

Bench: Shri Om Prakash Kant () & Ms. Suchitra Raghunath Kamble ()

For Respondent: Mr. Dhaval Shah/ Ms. Tisha Bagh

Section 142(1)Section 143(2)Section 144Section 144(1)(b)Section 234BSection 271ASection 69C

assessee. 4. On the facts and in the circumstances of the case and in law, The Ld. AO legally erred in charging interest u/s 234B of the Act. 5. On the facts and in the circumstances of the case the Ld. A.O. legally erred in passing penalty order u/s 271AAC

Natwest Digital Services India Private Limited Successor Entity to Nwm Services India Private Ltd., Gurgaon, Haryana vs. Assistant Commissionar of Income Tax, Gurgaon

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

ITA 2004/DEL/2025[2019-20]Status: DisposedITAT Delhi10 Sept 2025AY 2019-20

Bench: Shri Anubhav Sharma & Shri Manish Agarwalnatwest Digital Services India Asst. Commissioner Of Private Limited Successor Entity Income Tax, To Nwm Services India Private Vs. Circle-3(1), Gurgaon. Ltd. (Successor Entity Of Nwm Services India Private Limited) 6Th Floor, Tower A, Building 2, Candor Techspace, It/Ites Sez, Sector-21, Industrial Complex, Dundahera, Gurgaon, Haryana-122016. Pan:Aagcn0009D (Appellant) (Respondent) Assessee By Shri S.K. Aggarwal, Ca Department By Shri Mahesh Kumar, Cit-Dr Date Of Hearing 04.09.2025 Date Of Pronouncement 10.09.2025

Section 143(1)Section 154Section 250Section 36(1)(va)Section 43B

allowed. Successor Entity to NWM Services India Private Limited vs. ACIT 8. Ground of appeal No.3 is with regard to the levy of interest u/s 234B and 234C which are consequential in nature and AO is directed to charge the interest on the income finally computed after giving effect

Greatway Private Limited, Opp Military Camp Gt Road Ldh vs. Deputy Commissioner of Income Tax-4(1), Aayakar Bhawan Rishi Nagar Ludhiana

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

ITA 234/CHANDI/2024[2020-2021]Status: DisposedITAT Chandigarh03 Sept 2025AY 2020-2021

Bench: Shri Rajpal Yadav & Shri Krinwant Sahayआयकर अपील सं./ Ita No. 234/Chd/2024 "नधा"रण वष" / Assessment Year : 2020-21 Greatway Private Limited, Dcit, बनाम Opp. Military Camp Aayakar Bhawan G.T.Road, Rishi Nagar, Vs. Ludhiana. Ludhiana. "थायी लेखा सं./Pan No. Aaacg5950E अपीलाथ"/Appellant ""यथ"/Respondent ( Physical Hearing ) "नधा"रती क" ओर से/Assessee By : Shri. Ashish Aggarwal, C.A. राज"व क" ओर से/ Revenue By : Shri Vivek Vardhan, Addl. Cit, Sr. Dr सुनवाई क" तार"ख/Date Of Hearing : 28-07-2025 उदघोषणा क" तार"ख/Date Of Pronouncement : 03.09.2025 आदेश/Order Per Krinwant Sahay, Am: Appeal In This Case Has Been Filed By The Assessee Against The Order Dated 29-01-2024 Of Ld. Addl./Jcit(A)-3, Bengaluru.

For Appellant: Shri. Ashish Aggarwal, C.AFor Respondent: Shri Vivek Vardhan, Addl. CIT, Sr. DR

Section 115BSection 143Section 143(1)Section 234B

Bengaluru ignoring the fact that the appellant company had filed requisite Form 10-IC. 2. That the Ld. A.O. has charging interest u/s 234B & 234C which is consequential. 3. That the appellant reserve the right to amend, delete, and substitute, modify or after any one or more of the grounds

Sudhir Appukuttan Panikassery, Mumbai vs. Income Tax Officer Circle 3, Kalyan

In the result, the appeal of the assesse bearing ITA No

ITA 3558/MUM/2025[2022-23]Status: DisposedITAT Mumbai03 Sept 2025AY 2022-23

Bench: Shri Narendra Kumar Billaiya & Shri Anikesh Banerjee

For Appellant: Shri Parag VyasFor Respondent: Ms. Kavitha Kaushik (SR DR)

Section 115JSection 139Section 139(1)Section 140ASection 140B(4)Section 143(1)Section 234BSection 234FSection 250Section 89

self-assessment tax under section 140A whereas the Ld.AO treated it as tax payment u/s 140B(4) of the Act. Accordingly, the interest u/s 234B of the Act shall be computed based on the assessed tax, i.e. tax on total income as declared in return furnished u/s ... 140B(4) of the Act and further the grievance for the assessee was that after the payment of such tax, the calculation of interest u/s 234B was levied beyond the period, from payment of tax to processing of return u/s 143(1) dated 11/12/2024. But the Ld.CIT(A) upheld

Khandelwal Soya Industries Limited, Rampur vs. ACIT(Centeral), Bareilly

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

ITA 93/LKW/2022[F.Y.2005-06]Status: DisposedITAT Lucknow29 Aug 2025

Bench: Shri Kul Bharat & Shri Nikhil Choudhary

For Appellant: Shri Rakesh Garg, AdvFor Respondent: Shri S. H. Usmani, CIT(DR)

Section 127Section 132Section 153ASection 153DSection 194H

reasonable ground in the assessment order which is to be allowed. 6. That the Learned CIT Appeal has erred in confirming the interest u/s 234B which was wrongly levied in regard to the disputed income. 7. The assessee reserves the right to add/amend one or more ground of appeal during ... disallowance of Depreciation on addition to fixed assets during the year. 5. That the Learned CIT Appeal has erred in confirming the interest u/s 234B which was wrongly levied in regard to the disputed income. 6. The assessee reserves the right to add/amend one or more ground of appeal during

Rp Panchal (HUF), Mumbai vs. Income Tax Officer-31(3)(2), Mumbai

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

ITA 2599/MUM/2025[2012-13]Status: DisposedITAT Mumbai29 Aug 2025AY 2012-13

Bench: MS. KAVITHA RAJAGOPAL (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)

For Appellant: Ms. Tisha Bagh a/w. Mr. Dhaval ShahFor Respondent: Shri Pravin Salunkhe, SR DR

Section 133(6)Section 143(2)Section 143(3)Section 144Section 148Section 234BSection 250Section 271(1)(c)

appellant. 8. The Ld. CIT(A) has erred in law and in facts in confirming the action of Ld. AO in charging interest u/s 234B and 234C of the Act. 9. The Ld. CIT(A) has erred in law and in facts in confirming the action

Voith Hydro Pvt Ltd, Noida vs. ACIT Circle-25(1), Delhi

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

ITA 5722/DEL/2024[2022-23]Status: DisposedITAT Delhi28 Aug 2025AY 2022-23

Bench: Shri Prakash Chand Yadav & Shri Manish Agarwalvoith Hydro Private Limited Assistant Commissioner A20 & 21, Noida Sector-59, Of Income Tax, Uttar Pradesh-201301. Vs. Circle-25(1), New Delhi. Pan-Aabcv5041J (Appellant) (Respondent)

Section 143(1)Section 234BSection 234CSection 243BSection 243CSection 250

inadvertent mistake made by them in the tax audit report. 8. In Ground No.5 & 6, the assesse has challenged the levy of interest u/s 234B & 234C. 9. The Ld. DR relied upon the orders of the NFAC. 10. After considering the materials available on record, we are of the view

S C Jhonson Products Pvt Ltd, Gurgaon vs. ACIT Circle-22(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 1470/DEL/2020[2007-08]Status: DisposedITAT Delhi28 Aug 2025AY 2007-08

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 1Section 139(1)Section 143(3)Section 147Section 148Section 250Section 80I

ITA No.1850/Del/2019, 1470 &1122/Del/2020 THE INCOME TAX APPELLATE TRIBUNAL DELHI “G” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER

Deepak Pawar, New Delhi vs. ACIT Circle 43, Delhi, New Delhi

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

ITA 3552/DEL/2025[2019-20]Status: DisposedITAT Delhi27 Aug 2025AY 2019-20

Bench: Shri M. Balaganeshdeepak Pawar, Vs. Acit, 4/47, First Floor, Circle-43, Subhash Nagar, New Delhi Delhi Pan: Avapp4384P Assessee By : Ms. Ragini Handa, Ca Revenue By: Shri Manoj Kumar, Sr. Dr Date Of Hearing 14/08/2025 Date Of Pronouncement 27/08/2025

For Appellant: Ms. Ragini Handa, CAFor Respondent: Shri Manoj Kumar, Sr. DR

Section 115BSection 147Section 148Section 148ASection 69C

notice issued u/s 148 of the Act and accordingly decide the chargeability of interest u/s 234A of the Act. 8. The chargeability of interest u/s 234B of the Act is consequential. 9. With regard to interest u/s 234C of the Act, it is well settled law that same shall

Sunidhi Securities & Finance Limited, Mumbai vs. DCIT 4(2)(1), Mumbai

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

ITA 5938/MUM/2024[2015-16]Status: DisposedITAT Mumbai26 Aug 2025AY 2015-16

Bench: Ms. Kavitha Rajagopal, Jm & Shri. Girish Agrawal, Am Sunidhi Securities & Finance The Deputy Commissioner Of Limited Income Tax, 4(2)(1), Mumbai 8Th Floor, Unit-1, Kalpataru Inspire, Room No. 642, Aaykar Bhavan, M. Vs. Opp. Grand Hyatt Hotel, Santacruz K. Road, Mumbai – 400020. (East), Mumbai – 400055 Pan/Gir No. Aadcs1657D (Appellant) : (Respondent) Assessee By : Shri. Shashi Bekal : Shri. Pravin Salunkhe (Sr. Dr) Respondent By Date Of Hearing : 06.06.2025 Date Of Pronouncement : 26.08.2025 O R D E R Per Kavitha Rajagopal, J M: This Appeal Has Been Filed By The Assessee, Challenging The Order Of The Learned Commissioner Of Income Tax (Appeals) Delhi (‘Ld. Cit(A)’ For Short), National Faceless Appeal Centre (‘Nfac’ For Short) Passed U/S.250 Of The Income Tax Act, 1961 (‘The Act'), Pertaining To The Assessment Year (‘A.Y.’ For Short) 2015-16. 2. The Assessee Has Raised The Following Grounds Of Appeal: Grounds Of Appeal: 1. The Ld. C.I.T. (Appeals) Erred In Confirming The Action Of D.C.I.T. Of Reopening The Assessment Merely Based On Reason To Suspect & Not Reason To Believe & Is Therefore Bad In Law. 2. The Ld. C.I.T. (Appeals) Erred In Confirming The Action Of D.C.I.T. Treating The Trading In Steel Exchange India Limited Through Recognized Stock Exchange As Bogus Trading Loss. Sunidhi Securities & Finance Limited

For Appellant: Shri. Shashi Bekal

Section 115JSection 143(1)Section 143(3)Section 147Section 148Section 151Section 234BSection 250

C.I.T. (Appeals) erred in confirming the addition made of Rs. 16,86,282/- 5. The Ld. C.I.T. (Appeals) erred in charging excess Interest u/s 234B of Rs. 9,42,564/-, while determining the tax liability & demand. 6. The Appellant reserves the right to add, to alter and to amplify

Fis Solutions (India) Gratuity Trust, Pune vs. DCIT Circle 3(1)(1), Bengaluru

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

ITA 542/PUN/2025[2013-2014]Status: DisposedITAT Pune25 Aug 2025AY 2013-2014

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Shri Sharad A VazeFor Respondent: Shri Ramnath P Murkunde

Section 10(25)(iv)Section 143(1)Section 143(1)(a)Section 234B

Income Tax Act, all income received on behalf of the approved gratuity fund is exempt from tax. Levy of Interest u/s 234B Rs.7,12,488 and 234C Rs. 1,09, 842 7. Erred in levying interest u/s 234B and 234C The appellant craves to add, alter, delete

Kuber Vasantrao Kenjale, Pune vs. ITO Ward 6(5), Pune

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

ITA 2331/PUN/2024[2015-16]Status: DisposedITAT Pune25 Aug 2025AY 2015-16

Bench: Justice (Retd.) C V Bhadang & Shri R. K. Pandaassessment Year : 2015-16

For Appellant: Smt. Deepa KhareFor Respondent: Shri Ramnath P Murkunde

Section 131Section 143(2)Section 234BSection 234CSection 54ESection 54F

learned CIT(A) has erred in computing interest u/s 234C on assessed income instead of return income, resulting in consequential impact on interest u/s 234B. Just and proper relief be granted to the appellant. 5. The learned CIT(A) has erred in granting adequate opportunity to the appellant. Just

Metso Oyj, Finland vs. Assistant Commissioner of Income Tax, (International Taxation), Circle-1(2), Kolkata

In the result, the appeal filed by the assessee is dismissed and the order of the Ld

ITA 616/KOL/2025[2022-23]Status: DisposedITAT Kolkata25 Aug 2025AY 2022-23

Bench: Shri Pradip Kumar Choubey & Shri Rakesh Mishra

Section 143(3)Section 144C(13)Section 144C(5)Section 234BSection 270ASection 56Section 9

absence of permanent establishment of the Appellant in India under Article 5 read with Article 7 of the DTAA. 4. Levy of interest u/s 234B of the Act 4.1 That on the facts and in the circumstances of the case and in law, Ld. AO erred in levying interest under

Ludlow Jute Company Limited Provident Fund, Kolkata vs. A.D.I.T., CPC, Bengaluru

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

ITA 2434/KOL/2024[2020-2021]Status: DisposedITAT Kolkata25 Aug 2025AY 2020-2021

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 10(25)Section 143(1)Section 234BSection 234CSection 250

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. 37,48,689/-, hence necessary direction may please be given to the A.O. to modify the computation of interest u/s 234B. 5. That

ACIT, Central Circle, Ghaziabad vs. Umesh Kumar Bajaj, Ghaziabad

Appeals of the assessee are allowed

ITA 2568/DEL/2023[2019-20]Status: DisposedITAT Delhi22 Aug 2025AY 2019-20

Bench: Shri Sudhir Kumar & Shri Manish Agarwal[Assessment Year : 2011-12] Shri Umesh Kumar Bajaj, Vs Dcit, R-5/21, Raj Nagar, Central Circle, Ghaziabad-201002. Ghaziabad Pan-Abcpb4457B Appellant Respondent [Assessment Year : 2011-12] Acit, Vs Umesh Kumar Bajaj, Central Circle, House No.21, Sector-5, Ghaziabad Raj Nagar, Ghaziabad-201002. Pan-Abcpb4457B Appellant Respondent

Section 1

case, Ld. CIT(A) has erred in law and on facts in not reversing the action of Ld. AO in charging interest u/s 234B of the Income Tax Act, 1961. 10. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal

ACIT, Central Circle, Ghaziabad vs. Umesh Kumar Bajaj, Ghaziabad

Appeals of the assessee are allowed

ITA 2567/DEL/2023[2017-18]Status: DisposedITAT Delhi22 Aug 2025AY 2017-18

Section 1

ACIT, Central Circle, Ghaziabad vs. Umesh Kumar Bajaj, Ghaziabad

Appeals of the assessee are allowed

ITA 2268/DEL/2023[2018-19]Status: DisposedITAT Delhi22 Aug 2025AY 2018-19

Section 1

ACIT, Central Circle, Ghaziabad vs. Umesh Kumar Bajaj, Ghaziabad

Appeals of the assessee are allowed

ITA 2267/DEL/2023[2016-17]Status: DisposedITAT Delhi22 Aug 2025AY 2016-17

Section 1