How many judgments are there on Section 194N?

BharatTax indexes 91 ITAT, High Court and Supreme Court judgments that turn on Section 194N of the Income Tax Act, 1961.

Section 194N of the Income Tax Act

Q: What is the leading case on Section 194N of the Income Tax Act?

COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED (90 Taxmann.com 365) is the decision most relied on for Section 194N, cited in 15 judgments. Interest income on Non-Performing Assets (NPA) need not be recognized on an accrual basis and the provisions of Section 145 of the Income Tax Act do not play a role in such income recognition. Furthermore, if interest does not result in any income, there can be no levy of tax.

Q: Which cases are most cited on Section 194N?

COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED (90 Taxmann.com 365) — 15 citing judgments.

Income-tax Act, 2025: s.393

Section 194N of the Income-tax Act, 1961 corresponds to section 393 (Tax to be deducted at source) of the Income-tax Act, 2025.

Read section 393 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 194N is COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED (90 Taxmann.com 365), cited in 15 of the 91 judgments on BharatTax that turn on this section.

Leading authorities on Section 194N

COMMISSIONER OF INCOME TAX v. VASISTH CHAY VYAAR LIMITED

90 Taxmann.com 365 · 2018 · Supreme Court

citing judgments

Interest income on Non-Performing Assets (NPA) need not be recognized on an accrual basis and the provisions of Section 145 of the Income Tax Act do not play a role in such income recognition. Furthermore, if interest does not result in any income, there can be no levy of tax.

Judgments on Section 194N

Krishna Kodali Kishore, Bengaluru vs. CIT (Appeals), Bengaluru

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

ITA 1538/BANG/2026[2023-24]Status: DisposedITAT Bangalore29 Sept 2026AY 2023-24

Bench: Shri Prashant Maharishi & Shri Sandeep Singh Karhail

Section 142(1)Section 143(1)(a)Section 143(2)Section 194NSection 250Section 270ASection 270A(2)Section 270A(9)Section 44A

Shri Dinakar Prabhakar Patil, Solapur vs. ITO WD-2, Pandharpur

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

ITA 1963/PUN/2026[2023-24]Status: DisposedITAT Pune24 Aug 2026AY 2023-24

Bench: Dr. Manish Borad & Shri Pavan Kumar Gadale

For Appellant: Shri.Riaz Patel, ARFor Respondent: Shri.Rajesh Haladkar.SR.DR

Section 143(1)Section 143(2)Section 143(3)Section 194NSection 44ASection 69A

Ch Kittur Taluk Prathmik Shala Shi vs. Hak Kiyar Pattin Sahakar Sangh Ny, Kitturvs.Ward-1, Belagavi

In the result, the appeal of the assessee is allowed

ITA 299/PAN/2026[2021-22]Status: DisposedITAT Panaji21 Aug 2026AY 2021-22

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.299/Pan/2026 Assessment Year: 2021-22 Ch Kittur Taluk Prathmik Shala Vs. Income Tax Officer, Shivshak Kiyat Pattin Sahakar Ward-1, Belagavi Sangh Ny, Guruwar Peth, Kittur – 591 115 Belagavi, Karnataka Pan : Aadac0874A Appellant Respondent

For Appellant: Shri Vijay R. Chappar, CAFor Respondent: Shri Mayur Kamble

Section 143(3)Section 194NSection 80P(2)(a)

M/S. Dhramapuri District Central Co Operative Bank Limited(Morrappur Branch), Dharmapuri vs. ITO TDS Ward Hosur, Hosur

In the result, all the appeals filed by the assessee are allowed for statistical purposes in terms indicated hereinabove

ITA 2147/CHNY/2026[2020-21]Status: DisposedITAT Chennai06 Aug 2026AY 2020-21