interest on interest — 238 judgments | BharatTax

SHRI BHARAT NAVINCHANDRA GALA ,MUMBAI vs. ITO WARD 41(3)(1), MUMBAI

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

ITA 506/MUM/2025[2012-13]Status: DisposedITAT Mumbai20 Feb 2026AY 2012-13

Bench: Smt. Beena Pillai ()

submissions of the assessee. The Ld. AO was also not satisfied with the explanation of the assessee as to why the interest on interest- bearing funds allegedly used for business purposes should be allowed. The assessee could not furnish any documentary evidence such as agreements or MOUs

DINESH CHAND JAIN,KANPUR vs. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, KANPUR

In the result, the appeal of the assessee is allowed

ITA 692/LKW/2025[2012-13]Status: DisposedITAT Lucknow17 Feb 2026AY 2012-13

Bench: Sh. Kul Bharat & Sh. Nikhil Choudharya.Y. 2012-13 Dinesh Chand Jain, Vs. Dy. Cit, 7/189, Swaroop Nagar, Kanpur- Central Circle-1, Kanpur 280002, U.P. Pan: Adbpj2732Q (Appellant) (Respondent) Assessee By: Sh. P.K. Kapoor, C.A. Revenue By: Sh. R.R.N. Shukla, Add Cit Dr Date Of Hearing: 04.12.2025 Date Of Pronouncement: 17.02.2026 O R D E R Per Nikhil Choudhary, A.M.: This Is An Appeal Filed By The Assessee Against The Orders Of The Ld. Ao Under Section 143(3) R.W.S. 154 Of The Income Tax Act, 1961 On 28.04.2016. The Grounds Of Appeal Are As Under:- “1.1 Because The Id. "Cit(A)" Has Erred In Law & On Facts In Upholding The Action Of The Assessing Officer In Withdrawing The Refund Of Interest Amounting To Rs. 8,20,163/-, Paid To The Assessee U/S 244A Of The Income-Tax Act, 1961 On Excess Amount Of Self-Assessment Tax Paid U/S 140A Of The Act. 1.2 Because The View Taken By Id. "Cit(A)" While Upholding The Action Of The Assessing Officer Is Based On Misinterpretation Of The Provisions Of Clause (B) Of Sub-Section (1) Of Section 244A Of The Act, As Applicable At The Relevant Point Of Time. 2. Because, In Any Case & Without Prejudice To The Grounds Hereinfore, While Upholding The Action Of The Assessing Officer In Withdrawing The Interest Paid To The Assessee U/S 244A Of The Act, The Ld. "Cit(A)" Failed To Appreciate That The Issue Of Payment Of Interest On Excess Amount Paid U/S 140A Was Debatable In Nature & It Could Not Have Been Decided By Invoking The Provisions Of Section 154 Of The Act As The Same Did Not Constitute A Mistake Apparent From The Record.

For Appellant: Sh. P.K. Kapoor, C.AFor Respondent: Sh. R.R.N. Shukla, Add CIT DR

Section 140ASection 143(3)Section 154Section 240Section 244Section 244ASection 244A(1)(a)Section 244A(1)(b)

Gujarat Fluoro Chemicals (supra). He pointed out that the judgment of the Hon’ble Supreme Court was on the subject of paying interest upon interest and in this context, the Hon’ble Supreme Court had held it was only interest provided for under the statute, which ... case of CIT vs. Gujarat Fluoro Chemicals (supra) was with regard to the rejection of the claim of the assessee for interest on interest in the light of the earlier decision of the Court in the case of Sandvik Asia Ltd vs Commissioner Of Income Tax (supra

DCIT, KOLKATA vs. HIMADRI SPECIALITY CHEMICAL LIMITED, KOLKATA

In the result, the appeal of the Revenue is dismissed

ITA 2223/KOL/2025[2012-13]Status: DisposedITAT Kolkata17 Feb 2026AY 2012-13

Section 115JSection 92C

maintain the rule of consistency, we follow the decision of the coordinate Benches of this Tribunal, and accept LIBOR for benchmarking interest on interest free loans to AEs. Since the LIBOR is a rate applicable in the transactions between the banks and further the loans advanced

JAGDEEP SINGH DHANOA,UNITED ARAB vs. INCOME TAX OFFICER IT 2(1) (1), MUMBAI

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

ITA 1681/MUM/2022[2017-18]Status: DisposedITAT Mumbai17 Feb 2026AY 2017-18

Bench: Hon’Ble Shri Sandeep Gosain & Hon’Ble Shri Prabhash Shankarjagdeep Singh Dhanoa Vs. Income Tax Officer, 8202, 23 Marina, Po Pox It (2)(1), Mumbai 73392, Dubai Marina Dubai 1724, 17Th Floor, Air Ar, Foreign, India Building, United Arab Emirates- Nariman Point, 73392 Mumbai - 400021 Pan/Gir No. Aadpd4843R (Applicant) (Respondent) Assessee By None Revenue By Shri Krishna Kumar (Sr. Dr.) Date Of Hearing 03.02.2026 Date Of Pronouncement 17.02.2026 आदेश / Order Per Sandeep Gosain, Jm: The Present Appeal Has Been Filed By The Assessee Challenging The Impugned Order 26.04.2022 Passed U/S 143(3) R.W.S. 144C Of The Income Tax Act, 1961 (‘The Act’), By The Office Of The Income Tax Officer Ward 2(1) (1), Mumbai For The Assessment Year 2017-18. The Following Grounds Are Reproduced Below:

Section 143(3)Section 234ASection 234B

Mumbai (Ld. TPO)/ Income Tax Officer International Tax Ward 2(1)(1). Mumbai (Ld. AO in respect of notional interest on interest free loans granted to the AEs of the Appellant. 1.2 The Ld. DRP erred in not applying the provisions of Article 11 of the India

JCIT(OSD)-14(1)(1), MUMBAI vs. KUKREJA BUILDERS PVT. LTD., MUMBAI

In the result, the revenue’s appeal is partly allowed in the above terms

ITA 2102/MUM/2025[2013-14]Status: DisposedITAT Mumbai13 Feb 2026AY 2013-14

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankarassessment Year: 2013-14 Dcit – 14(1)(1), Mumbai M/S. Kukreja Builders Room No. 432, 4Th Floor, Pvt. Ltd. Aayakarbhavan, M.K. Road, 4 & 5Th Floor, Sai Mumbai - 400020 Commercial Building, Bks Vs. Devshi Marg., Govandi (E), Mumbai, Maharashtra– 400088 Pan: Aacck5040M (Appellant) (Respondent) Present For: Assessee By : Shri Ajay Singh & Shri Akshay Pawar, Ld. A.R. Revenue By : Shri Hemanshu Joshi, (Sr. D.R.) Date Of Hearing : 12.12.2025 Date Of Pronouncement : 13.02.2026 O R D E R Per : Narender Kumar Choudhry: This Appeal Has Been Preferred By The Assessee Against The Order Dated 25.01.2025, Impugned Herein, Passed By The National Faceless Appeal Centre (Nfac)/Ld. Commissioner Of Income Tax (Appeals) (In Short Ld. Commissioner) U/S 250 Of The Income Tax Act, 1961 (In Short ‘The Act’) For The A.Y. 2013-14. 2. In The Instant Case, The Assessee During The A.Y. Under Consideration Had Declared Its Total Income As Rs. 2,20,00,580/- By Filing Its Return Of Income, Which Was Initially Processed Under Section 143 Of The Act. 2 M/S. Kukreja Builders Pvt. Ltd.

For Appellant: Shri Ajay Singh & Shri AkshayFor Respondent: Shri Hemanshu Joshi, (SR. D.R.)

Section 131Section 133(6)Section 143Section 250Section 68

ignoring the fact that the assessee has advanced interest free loans to other entity, hence, proportionate interest on interest free loans liable to be disallowed. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the deduction

LIC HOUSING FINANCE LIMITED,MUMBAI vs. ACIT, MUMBAI

ITA 6974/MUM/2024[2007-08]Status: DisposedITAT Mumbai12 Feb 2026AY 2007-08

For Appellant: \nShri S.Bhandari and Sri Shreyas Shah,(Adv.)For Respondent: \nShri Surendra Mohan,(Sr. DR)

Section 153(5)Section 154Section 244ASection 244A(1)(b)Section 5(2)

ITAT in the case of Deutsche Bank A. G. Vs The Deputy\nDirector of Income Tax (International Taxation) ITA No.\n3789/Mum/2010 wherein interest on interest was allowed following\ndecision of Hon'ble Apex Court in H.E.G. Ltd. in 324 ITR 331 (SC).\n4.7 It is pleaded that denial ... been allowed till the issue of refund voucher. On appeal, the ld. CIT(A)\nheld that the appellant is not entitled to interest on interest u/s 244A of the Act as\nthere is no provisions in Income-tax Act by which the authorities can grant such\ncompensation

LIC HOUSING FINANCE LTD,MUMBAI vs. ACIT, MUMBAI

In the result, all the aforesaid appeals of the assessee are\nallowed

ITA 6973/MUM/2024[2006-07]Status: DisposedITAT Mumbai12 Feb 2026AY 2006-07

For Appellant: \nShri S.Bhandari and Sri Shreyas Shah,(Adv.)For Respondent: \nShri Surendra Mohan,(Sr. DR)

Section 153(5)Section 154Section 244ASection 244A(1)(b)Section 5(2)

ITAT in the case of Deutsche Bank A. G. Vs The Deputy\nDirector of Income Tax (International Taxation) ITA No.\n3789/Mum/2010 wherein interest on interest was allowed following\ndecision of Hon'ble Apex Court in H.E.G. Ltd. in 324 ITR 331 (SC).\n4.7 It is pleaded that denial ... been allowed till the issue of refund voucher. On appeal, the ld. CIT(A)\nheld that the appellant is not entitled to interest on interest u/s 244A of the Act as\nthere is no provisions in Income-tax Act by which the authorities can grant such\ncompensation

LIC HOUSING FINANCE LTD,MUMBAI vs. ACIT, MUMBAI

In the result, all the aforesaid appeals of the assessee are allowed

ITA 6972/MUM/2024[2005-06]Status: DisposedITAT Mumbai12 Feb 2026AY 2005-06

Bench: Shri Narender Kumar Choudhry & Shri Prabhash Shankar

For Appellant: Shri S.Bhandari and Sri Shreyas Shah,(Adv.) and Amicus CuriaeFor Respondent: Shri Surendra Mohan,(Sr. DR)

Section 143(1)(a)Section 153(5)Section 154Section 244ASection 244A(1)(b)Section 5(2)

ITAT in the case of Deutsche Bank A. G. Vs The Deputy Director of Income Tax (International Taxation) ITA No. 3789/Mum/2010 wherein interest on interest was allowed following decision of Hon’ble Apex Court in H.E.G. Ltd. in 324 ITR 331 (SC). 4.7 It is pleaded that denial ... 6974/Mum/2024 A.Y. 2005-06, 2006-07 & 2007-08 M/s LIC Housing Finance Limited 3789/3790 and 4182Mum/2010 also allowed the claim of interest on interest by following the hon’ble Apex Court decisions in Sandvik Asia Ltd. V. CIT (2006) 280 ITR 643 (SC), CIT vs. H.E.G

SAURASHTRA CEMENT LIMITED,PORBANDAR vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX, JAMNAGAR, JAMNAGAR

In the result, appeal filed by the assessee is allowed

ITA 307/RJT/2024[2018-19]Status: DisposedITAT Rajkot08 Jan 2026AY 2018-19

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं/.Ita No.307/Rjt/2024 िनधा"रणवष"/ Assessment Year: 2018-19 Saurashtra Cement Ltd. Principal Commissioner Of Near Railway Station, बनाम Income Tax, Jamnagar, Saurashtra Cement Factory, Jamnagar Vs. P.O. Ranavav, Adityana Road, Porbandar, Gujarat-360560 Pan : Aahfs5211J (अपीलाथ"/Assessee) : (""थ"/Respondent) िनधा"रती की ओर से/Assessee By : Shri Vimal Desai, Ld.Ar राज" की ओर से/Revenue By : Shri Sanja Punglia, Ld. Cit-Dr सुनवाई की तारीख/Date Of Hearing : 16/10/2025 घोषणा की तारीख/Date Of Pronouncement : 08/01/2026 Order

For Appellant: Shri Vimal Desai, ld.ARFor Respondent: Shri Sanja Punglia, Ld. CIT-DR

Section 143(3)Section 14ASection 263Section 36(1)(iii)

thus, it is alleged that borrowed funds have been diverted to non-business uses and accordingly, it is proposed to disallow proportionate interest on interest free loans and advances granted u/s 36(1)(iii) @12.11% calculated on the basis of total finance cost and borrowed funds.However we find

DCIT CENTRAL CIRCLE-01, NEW DELHI vs. SAHARA INDIA COMMERCIAL CORPORATION LTD. , KOLKATA

In the result, appeal of the Revenue is dismissed and CO of the assessee is allowed

ITA 5793/DEL/2019[2016-17]Status: DisposedITAT Delhi23 Dec 2025AY 2016-17

Bench: Shri Vikas Awasthy & Shri S Rifaur Rahmanआअसं.1977/धिल्ली/2013(नि.व. 2009-10) Sahara India Commercial Corporation Ltd., Sahara India Sadan, 2A, Shakespeare Sarani, Kolkata 700071 ...... अपीलार्थी/Appellant Pan: Aadcs-6118-F बिाम Vs. Deputy Commissioner Of Income Tax, Central Circle-6, R. No. 334, E-2, Ara, ..... प्रनिवादी/Respondent Centre Jhandewalan Extn. New Delhi आअसं.4728, 2795, 4729, 4730 और 4731/धिल्ली/2017(नि.व. 2010-11 से 2014-15)

Section 142