“interest under section 234C”

InterestSection 234CSection 234C353 judgments

The decision most relied on for interest under section 234C is CIT v. Anjum M.H. Ghaswala (252 ITR 1), cited in 452 judgments on BharatTax.

Leading authorities on interest under section 234C

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.

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.

CIT v. Tata Autocomp Systems Ltd.

56 Taxmann.com 206 · 2015 · High Court

119

citing judgments

When determining the arm's length price for interest on a foreign currency loan advanced to an Associated Enterprise, the Indian Prime Lending Rate is not applicable. Instead, the interest rate should be benchmarked based on the prevailing foreign currency rate, such as EURIBOR, or the rate in the country where the loan is received/consumed.

CIT v. Pfizer Ltd.

330 ITR 62 · 2011 · High Court

citing judgments

An insurance claim received on stock in trade constitutes business income and is not an independent source of income.

Pr. CIT v. Ankit Metal & Power Ltd.

109 Taxmann.com 93 · 2019 · High Court

citing judgments

Capital receipts, such as interest and power subsidy, are not includible in book profit under Section 115JB as they do not fall within the definition of income under Section 2(24).

Judgments citing interest under section 234C

M/S. Kluber Lubrication India Private Limited, Bangalore vs. Pr. Commissioner of Income-Tax, Circle-4(1)(1), Bangalore

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

ITA 765/BANG/2023[2019-20]Status: DisposedITAT Bangalore26 Jul 2024AY 2019-20

Bench: Shri George George K & Shri Waseem Ahmedassessment Years: 2019-20

For Appellant: Shri Karanjot Singh, Shri Devashish Jain & ShriFor Respondent: Shri Subramanian S, JCIT (DR)

Section 143(1)Section 154Section 234CSection 244A

facts and in circumstances of the case and in law, the Ld. CIT(A) has erred in directing the Ld. AO to levy interest under Section 234C of the Income-tax Act, 1961. 6. That on the facts and in circumstances of the case

Goodyear India Ltd., Faridabad vs. DCIT, Circle-10(1), New Delhi

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

ITA 346/DEL/2022[2017-18]Status: DisposedITAT Delhi26 Jul 2024AY 2017-18

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR

Section 143(3)Section 144BSection 144CSection 92B

appellant vide challan dated 02.09.2016 and Challan serial number 95022. 9. That the assessing officer erred on the facts andin law in charging interest under section 234C of the Act at Rs. 8,63,466 as against correct interest of Rs. 5,33,170. 10. That the assessing officer erred

Goodyear India Ltd, Faridabad vs. ACIT, Circle-10(1), New Delhi

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

ITA 1451/DEL/2022[2018-19]Status: DisposedITAT Delhi26 Jul 2024AY 2018-19

Bench: Shri G. S. Pannu & Shri Yogesh Kumar U.S.

For Appellant: Shri Ajay Vohra, Sr. AdvFor Respondent: Shri Vivek Verma CIT (DR ) and Sh. Kanv Bali, Sr. DR

Section 143(3)Section 144BSection 144CSection 92B

Honda Trading Asia Co. Ltd., Thailand vs. DCIT, Intl. Taxation Circle, Noida

ITA 7276/DEL/2018[2015-16]Status: DisposedITAT Delhi23 Jul 2024AY 2015-16

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

Section 12Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 234ASection 234D

supreme Court in case of Director of Income-tax, New Delhi vs. Mitsubishi Corporation [2021] 130 taxmann.com 276 (SC). As for interest under section 234C it was submitted that interest is applicable on returned income, accordingly, AO has erred in levying interest under section 234C. Even otherwise, grounds challenging levy

Honda Trading Asia Co. Ltd., New Delhi vs. DCIT, Noida

ITA 1160/DEL/2015[2010-11]Status: DisposedITAT Delhi23 Jul 2024AY 2010-11

Bench: Shri G.S.Pannu, Hon’Ble & Shri Anubhav Sharma

Section 12Section 143(2)Section 143(3)Section 144CSection 144C(1)Section 234ASection 234D

Kohler India Corporation Private Limited, Delhi vs. DCIT, Circle 13(1), New Delhi

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

ITA 435/DEL/2024[2021-22]Status: DisposedITAT Delhi10 Jul 2024AY 2021-22

Bench: Shri Pradip Kumar Kedia & Shri Sudhir Pareeksa No.63/Del/2024 (Arising Out Of Ita No.435/Del/2024 Assessment Year 2021-22

For Respondent: Mr. Waseem Arshad, CIT (DR)

Section 143(1)Section 234BSection 234CSection 250

which is consequential in nature. 5. That impugned order of First Appellate Authority has erred in not deleting interest under section 234C of the Act amounting to Rs.14,97,377/- by disregarding that interest under section 234C of the Act is levied on the returned income of the Appellant

Societe Generale Global Solution Centre Private Limited, Bangalore vs. Deputy Commissioner of Income Tax, Circle-6(1)(1), Bangalore

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

ITA 1028/BANG/2024[2018-19]Status: DisposedITAT Bangalore02 Jul 2024AY 2018-19

Bench: Shri Chandra Poojari & Smt. Beena Pillaiassessment Year: 2018-19

For Appellant: Sri Rony Antony, A.RFor Respondent: Smt. S. Praveena, D.R

Section 1Section 10ASection 142(1)Section 143(1)Section 143(3)Section 234CSection 250Section 44ASection 90

respect of tax paid by the Appellant outside India. 7. That the Ld. ADIT erred in levying interest under section 234C of the Act in excess of what was levied on the returned income in the return of income. 2. The assessee also filed following additional grounds: “In addition

Ksb Limited, Mumbai vs. The Assistant Director of Income Tax CPC, Bangaluru

In the result, the appeal is allowed for statistical purpose

ITA 1313/MUM/2024[2020-21]Status: DisposedITAT Mumbai26 Jun 2024AY 2020-21

Bench: Shri Pavan Kumar Gadale & Shri Ratnesh Nandan Sahayassessment Year: 2020-21 M/S. Ksb Limited The Assistant Director Of 601 Tower 1, Income Tax, Cpc Runawal R Square, Vs. Bengaluru, Lbs Road, Karnataka- 560500. Mulund (W.)- 400080. Pan: Aaack5918J (Appellant) (Respondent) Present For: Assessee By : Shri Nikhil Tiwari A/W. Shri Mihir Chitaliya, A.R. Revenue By : Shri Biswanath Das- Cit D.R. Date Of Hearing : 13 . 06 . 2024 Date Of Pronouncement : 26 . 06 . 2024 O R D E R Per : Ratnesh Nandan Sahay: 1. This Appeal Has Been Filed By The Appellant Against The Order Of The Ld. Cit (Appeals) Passed U/S. 250 Of The Income Tax Act [The ‘Act’ In Short] Vide Din & Order No. Itba/Apl/S/250/2023-24/1060135975(1) Dated 25/01/2024 For The Assessment Year 2020-21. 2. The Following Grounds Of Appeal Have Been Raised By The Appellant: “Based On The Facts & Circumstances Of The Case & In Law, Ksb Limited (Hereinafter Referred To As 'The Appellant") Has Preferred An Appeal Before Your

For Appellant: Shri Nikhil Tiwari a/w. Shri Mihir Chitaliya, A.RFor Respondent: Shri Biswanath Das- CIT D.R

Section 143(1)Section 143(3)Section 234CSection 250Section 35DSection 43B

facts and circumstances of the case and in law in granting the TDS credit short by INR 9,575. 5. Erroneous levy of interest under section 234C of the Act 5.1. The learned AO has erred on facts on levying the additional interest of INR 85,865 under section 234C

DCIT, C-1(1), Chandigarh vs. M/S Fidelity Information Services India Pvt. Ltd., Chandigarh

In the result, the cross-objection filed by the assessee is dismissed

ITA 1328/CHANDI/2019[2014-15]Status: DisposedITAT Chandigarh07 Jun 2024AY 2014-15

Bench: SHRI. AAKASH DEEP JAIN (Vice President), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Vishal Kalra, Advocate and Ms. Sumisha, C.AFor Respondent: Shri Rohit Sharma, CIT DR

Section 37(1)

under Section 234B of the Act however, there has been no ground of appeal which has been taken in respect of levy of interest under Section 234C of the Act. 29. Moving further, it is noted that the Ld. CIT(A) has dismissed the said ground of appeal against levy

Stellar Refractories Private Limited, Nagpur vs. Deputy Commissioner of Income Tax, Circle-1, Nagpur

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

ITA 420/NAG/2022[2020-21]Status: DisposedITAT Nagpur06 Jun 2024AY 2020-21

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Rajesh LoyaFor Respondent: Shri Abhay Y. Marathe

Section 143(1)Section 143(1)(a)Section 234CSection 36(1)(va)

delete the disallowance of delayed deposit of EPF for ` 1,46,050, The assessee could not demonstrate any apparent error in calculation of interest under section 234C of the Act. So, ground no.4, is dismissed. Stellar Refractories Pvt. Ltd. ITA no.420/Nag./2022 12. In the result, appeal filed

Mewat Grit Udyog (Since Dissolved) Through Its Successor Nkb Infrastructure Pvt Ltd, Rewari, Haryana vs. Income Tax Officer, Ward-2, Rewari, Haryana

In the result, the appeal of the assessee is allowed

ITA 372/DEL/2024[2010-11]Status: DisposedITAT Delhi06 Jun 2024AY 2010-11

Bench: Dr. B. R. R. Kumar, Sh. Sudhir Kumar

For Appellant: Sh. Nikhil Goyal, AdvFor Respondent: Sh. Anshul, Sr. DR

Section 143(3)Section 154Section 234CSection 254Section 263Section 40

dated 11.03.2021 with income of Rs. 1,52,73,067/- computing the gross demand having tax of Rs. 47,22,361/- plus interest under section 234C of Rs. 2,982/-. The credit of prepaid taxes of Rs. 1,13,22,241/- (TDS of Rs. 43,33,108/- and Advance

Bloom Seal Containers Pvt Ltd, Mumbai vs. The Deputy Commissioner of Income Tax, Centralized Processing Centre It Dept, Bangalore

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

ITA 2591/MUM/2023[2017-18]Status: DisposedITAT Mumbai31 May 2024AY 2017-18

Bench: Shri Narender Kumar Choudhry & Smt. Renu Jauhribloom Seal Containers Vs. Dcit, Cpc, Pvt. Ltd. It Department, 4Th Floor, Ready Money Bengluru Terrace, Dr. Annie Besant Road, Worli Naka, Worli, Mumbai-400018 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Appellant .. Respondent

For Appellant: Shri Kirit KamdarFor Respondent: Shri Himanshu Kumar

Section 115JSection 143(1)Section 234Section 234CSection 250Section 40A(7)Section 43B

facts and in the circumstances of the case in law, the CIT(A) erred in upholding the action of the CPC in levying interest under section 234C of the act. 4.2 the appellant, therefore, prays that interest levied under section 234C of the Act be deleted. 3 Brief matter

Tata Toyo Radiator Limited, Pune vs. Deputy Commissioner of Income-Tax, Circle 7, Pune

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

ITA 152/PUN/2024[2018-19]Status: DisposedITAT Pune29 May 2024AY 2018-19

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.152/Pun/2024 िनधा"रण वष" / Assessment Year: 2018-19 Tata Toyo Radiator Limited, Vs. Dcit, Circle-7, Pune. Taco House, V.G. Damle Path, Off Law College Road, Deccan Gymkhana, Pune- 411004. Pan : Aaact5566F Appellant Respondent Assessee By : Shri M. D. Sancheti Revenue By : Shri Ajay Kumar Keshari Date Of Hearing : 28.05.2024 Date Of Pronouncement : 29.05.2024 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 29.11.2023 Passed By Ld Cit(A)/Nfac, Delhi For The Assessment Year 2018-19. 2. The Appellant Has Raised The Following Grounds Of Appeal :- “1. The Order Passed By The Learned Cit(A) Is Ultra Vires, Illegal, Bad In Law & Contrary To The Provisions Of The Act. Violation Of Principles Of Natural Justice 2. The Learned Cit(A) Has Thus Erred In Law & On Facts In Passing An Ex-Parte Order Without Granting A Proper Opportunity Of Being Heard, Thereby Violating The Principles Of Natural Justice.

For Appellant: Shri M. D. SanchetiFor Respondent: Shri Ajay Kumar Keshari

Section 143(2)Section 234BSection 234C

adjudicating on the levy of excess interest under section 234B of the Act to the extent of Rs.34,671. Excess-levy of interest under section 234C of the Act 7. The learned CIT(A) erred in not adjudicating on the levy of excess interest under section 234C

India Acorn Fund Ltd, Mumbai vs. Deputy Commissioner of Income Tax (International Taxation)-2(2)(1), Mumbai

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

ITA 4556/MUM/2023[2021-22]Status: DisposedITAT Mumbai29 May 2024AY 2021-22

Bench: Smt Kavitha Rajagopal, Jm & Ms Padmavathy S, Am

For Appellant: Shri MADHUR Agarwal / FenilFor Respondent: Shri Anil Sant, Addl. CIT-DR

Section 143(2)Section 143(3)Section 144C(13)Section 144C(5)Section 153Section 234ASection 234C

delay in filing the return of income and payment of taxes by the Appellant, Ground of Appeal No. 10: Levy of interest under section 234C of the Act-INR 31,90,217 10. Erred in levying interest under Section 234C of the Act amounting ... against interest under section 234C of the Act amounting to INR 16.27.762 computed by the Appellant and discharged while filing the return of income;” India Acron Fund Ltd. 2. Ground No.1 is general. During the course of hearing the ld AR did not press for Ground

ACIT Cir 7(1), Mumbai vs. Novartis India ( Formelry Known As Hindustan Ciba Giegy Ltd), Mumbai

In the result, (i) the appeal filed by the assessee is partly allowed for statistical purpose (ii) the appeal filed by the revenue is dismissed and (iii) the Cross Objections filed by the assessee ...

ITA 2188/MUM/2012[2003-04]Status: DisposedITAT Mumbai28 May 2024AY 2003-04

Bench: Pavan Kumar Gadale & Shri Girish Agrawal & Co 76/Mum/2013 (A.Y 2003-04) Novartis India Limited Vs. Deputy Commissioner Of Income–Tax–14(1)(1) Inspire Bkc, 7Th Floor, Room No 432, Bandra Kurla Complex, Aaykar Bhawan, Bandra (E) M.K. Marg, Mumbai-400051. Mumbai-400020. Pan/Gir No. Aaach2914F (अपीलाथ"/Appellant) (""यथ"/Respondent) Deputy Commissioner Vs. Novartis India Limited Of Income–Tax–14(1)(1) Inspire Bkc, 7Th Floor, Room No 432, Bandra Kurla Complex, Aaykar Bhawan, Bandra (E) M.K. Marg, Mumbai-400051 Mumbai-400020 Pan/Gir No. Aaach2914F (अपीलाथ"/Appellant (""यथ"/Respondent)

Section 37(1)Section 41(3)Section 80H

2188/Mum/2012 &C.O.76/Mum/2013(A.Y.: 2003-04) Novartis India Limited, Mumbai GROUND NO. 9 The CIT(A) ought to have directed the AO to charge interest under section 234C per Revised Return of Income. The appellants crave leave to add to, amend, alter, vary, omit or substitute the above grounds of appeal

Dy. Commissioner of Income Tax, Circle-1(1), Pune vs. Ctr Manufacturing Industries Private Limited, Pune

ITA 998/PUN/2023[2014-15]Status: DisposedITAT Pune27 May 2024AY 2014-15

Bench: Shri S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.998/Pun/2023 िनधा"रणवष" / Assessment Year : 2014-15 The Dy.Commissioner Ctr Manufacturing Of Income Tax, Circle- Vs Industries Private Limited, 1(1), Pune. Nagar Road, Vadgaon Sheri, S.O. Pune City, Pune – 411014. Pan: Aaacc7256R Appellant/ Revenue Respondent /Assessee

Section 143(3)Section 14ASection 250Section 35Section 35(1)(ii)

professional fees incurred. Erroneous levy of interest of Rs. 3,52,526 under section 234C of the Act 16. failed to appreciate that interest under section 234C can be levied only on returned income and not on assessed income. Accordingly, excess interest of Rs.3,52,526 charged under section 234C

Indian Oil Corporation Ltd., Mumbai vs. Addl. CIT - 10 (1), Mumbai

In the result, cross objection filed by the assessee is dismissed

ITA 6025/MUM/2016[2011-12]Status: DisposedITAT Mumbai22 May 2024AY 2011-12

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand

Section 42(1)(a)Section 80Section 80I

postal ballot 44,121 Total 22,21,528 16. The CIT(A) erred in not specifically directing the Assessing Officer to charge interest under section 234C as pdr revised return. Page No. 4 ITA NO. 6025 & 5979/MUM/2016 (A.Y: 2011-12) CO NO. 31/MUM/2018 M/s. Indian Oil Corporation Ltd., Grounds

DCIT - 14(2)(1), Mumbai vs. Indian Oil Corporation Pvt. Ltd., Mumbai

In the result, cross objection filed by the assessee is dismissed

ITA 5979/MUM/2016[2011-12]Status: DisposedITAT Mumbai22 May 2024AY 2011-12

Bench: Shri Narendra Kumar Billaiya, Hon'Bleand

Section 42(1)(a)Section 80Section 80I

Balasubramaniam Palaniappan, Erode vs. ITO, Ward 1(5), Erode

In the result, appeal filed by the assessee in ITA No

ITA 1398/CHNY/2023[2017-18]Status: DisposedITAT Chennai21 May 2024AY 2017-18

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita No.1398/Chny/2023. (िनधा"रणवष" / Assessment Year: 2017-18) Balasubramaniam Palaniappan, Vs. The Income Tax Officer, No.10, Narayanasamy Street, Ward 1(5) N.G.G.O. Colony, Surampatti, Erode. Erode 638 009. [Pan: Aljpp 2779F] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : None ""यथ" क" ओर से /Respondent By : Shri Arv Srinivasan, Irs, Addl. Cit. सुनवाई क" तार"ख/Date Of Hearing : 15.05.2024 घोषणा क" तार"ख /Date Of Pronouncement : 21.05.2024 आदेश / O R D E R Manu Kumar Giri ()

For Appellant: NoneFor Respondent: Shri ARV Srinivasan, IRS, Addl. CIT

Section 142(1)Section 144Section 234CSection 44ASection 69A

becomes illegal and inapplicable and when the prevailing market rate is subject to variation and verification.. 5. Without prejudice, the levy of interest under Section 234C at Rs.22,732/- in the Order Giving Effect dated 14/09/2023 is illegal and without cognizance of the settled law that it is leviable

Marsh India Insurance Brokers Private Limited, Mumbai vs. Addl/Jt/Dy/Asstt/CIT/ITO/NFAC, Delhi

In the result, both the appeal

ITA 642/MUM/2022[2017-18]Status: DisposedITAT Mumbai13 May 2024AY 2017-18

Bench: Shri Om Prakash Kant () & Shri Raj Kumar Chauhan () Assessment Year: 2016-17 & Assessment Year: 2017-18 Marsh India Insurance Brokers Additional/Joint/Deputy/Assistant Private Limited, Commissioner Of Income 1201-02, Tower, One India Vs. Tax/Income-Tax Officer, National Bulls Centre, Jupiter Mills E-Assessment Centre, Delhi. Compound, Senapati Bapat Marg, Elphinstone Road (West), Mumbai-400013. Pan No. Aadcm 4220 G Appellant Respondent Assessee By : Mr. Madhur Agrawal Revenue By : Mr. Manoj Kumar, Cit-Dr

For Appellant: Mr. Madhur AgrawalFor Respondent: Mr. Manoj Kumar, CIT-DR

Section 234ASection 234B

required to furnish report under section 92E of the Act. report under section 92E of the Act. Ground No. 3: Levying interest under section 234C of the Act Ground No. 3: Levying interest under section 234C of the Act Ground No. 3: Levying interest under section 234C ... case, the learned AO erred in On the facts and circumstances of the case, the learned AO erred in computing and levying interest under section 234C computing and levying interest under section 234C of the Act amounting of the Act amounting to INR 41,28,779 instead