Section 245C(1) of the Income Tax Act

The decision most relied on for Section 245C(1) is CIT vs. Halliburton Offshore Services Inc. (2004) and CIT v. Reading and Bates Exploration Co. (278 ITR 47), cited in 13 of the 55 judgments on BharatTax that turn on this section.

Leading authorities on Section 245C(1)

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.

Rupam Mercantile v. DCIT
91 ITD 237 · 2004 · ITAT
13
citing judgments

Penalty under section 271(1)(c) cannot be levied when a substantial question of law is admitted by the High Court on an addition, indicating the issue was debatable and the assessee acted bona fide.

J 243 (Del)) (iii) ACIT vs. Smt. Radha Rani (101 TTJ 1017 (JP)) (iv) ACIT v. Ambica Food Industries Ltd. (
97 TTJ 575 · ITAT
5
citing judgments
J 107 (JP) 5. ACIT Vs. Ambica Food Industries Ltd. (110 TT J (Hyd.) 6. ACIT v. M.M. Sales Agencies
67 STC 101 · Reported
4
citing judgments
(2009) 29 SOT 53 (AHD) (URO) and HC Chandana (P) Ltd. v. DCIT
91 TTJ 243 · ITAT
4
citing judgments

Judgments on Section 245C(1)

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2584/CHNY/2025[2016-17]Status: DisposedITAT Chennai04 May 2026AY 2016-17

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2583/CHNY/2025[2015-16]Status: DisposedITAT Chennai04 May 2026AY 2015-16

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2582/CHNY/2025[2014-15]Status: DisposedITAT Chennai04 May 2026AY 2014-15

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2581/CHNY/2025[2013-14]Status: DisposedITAT Chennai04 May 2026AY 2013-14

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2580/CHNY/2025[2012-13]Status: DisposedITAT Chennai04 May 2026AY 2012-13

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Thanushkodi Narayanan, Chennai vs. DCIT, Central Circle-3(2), Chennai

In the result, the appeals filed by the assessees in ITA Nos

ITA 2576/CHNY/2025[2016-17]Status: DisposedITAT Chennai09 Mar 2026AY 2016-17

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. G. Tarun, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 132Section 142Section 142(1)Section 143(2)Section 153A

Thanushkodi Narayanan, Chennai vs. DCIT, Central Circle-3(2), Chennai

In the result, the appeals filed by the assessees in ITA Nos

ITA 2575/CHNY/2025[2015-16]Status: DisposedITAT Chennai09 Mar 2026AY 2015-16

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. G. Tarun, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 132Section 142Section 142(1)Section 143(2)Section 153A

Thanushkodi Narayanan, Chennai vs. DCIT, Central Circle-3(2), Chennai

In the result, the appeals filed by the assessees in ITA Nos

ITA 2574/CHNY/2025[2014-15]Status: DisposedITAT Chennai09 Mar 2026AY 2014-15

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. G. Tarun, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 132Section 142Section 142(1)Section 143(2)Section 153A

Thanushkodi Narayanan, Chennai vs. DCIT, Central Circle-3(2), Chennai

In the result, the appeals filed by the assessees in ITA Nos

ITA 2573/CHNY/2025[2013-14]Status: DisposedITAT Chennai09 Mar 2026AY 2013-14

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. G. Tarun, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 132Section 142Section 142(1)Section 143(2)Section 153A

Thanushkodi Narayanan, Chennai vs. DCIT, Central Circle-3(2), Chennai

In the result, the appeals filed by the assessees in ITA Nos

ITA 2571/CHNY/2025[2012-13]Status: DisposedITAT Chennai09 Mar 2026AY 2012-13

Bench: Shri Manu Kumar Giri & Shri S. R. Raghunatha

For Appellant: Shri. G. Tarun, AdvocateFor Respondent: Ms. R. Anitha, Addl. CIT
Section 132Section 142Section 142(1)Section 143(2)Section 153A

Jothi Narayanan, Chennai vs. DCIT, Central Circle-2(2), Chennai

ITA 2569/CHNY/2025[2011-12]Status: DisposedITAT Chennai09 Mar 2026AY 2011-12

Bench: This Tribunal.

Section 132Section 142Section 142(1)Section 143(2)Section 153A

Assistant Commissioner of Income Tax, Central Circle 6(3), Mumbai vs. Upl Limited, Mumbai

In the result, the grounds

ITA 4437/MUM/2025[2015-16]Status: DisposedITAT Mumbai10 Dec 2025AY 2015-16

Bench: Shri Pawan Singh& Shri Girish Agrawal

Section 132Section 143(3)Section 153ASection 245Section 254(1)

Assistant Commissioner of Income Tax, Central Circle 6(3), Mumbai vs. Upl Limited, Mumbai

In the result, the grounds

ITA 4436/MUM/2025[2014-15]Status: DisposedITAT Mumbai10 Dec 2025AY 2014-15

Bench: Shri Pawan Singh& Shri Girish Agrawal

Section 132Section 143(3)Section 153ASection 245Section 254(1)

Assistant Commissioner of Income Tax, Delhi vs. Ypa Restaurant Private Limited, Delhi

In the result, all the three appeals filed by the Revenue are dismissed

ITA 940/DEL/2024[2017-18]Status: DisposedITAT Delhi06 Oct 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandra

For Appellant: Shri Anil Sethi, CAFor Respondent: Shri Jitender Singh, CIT-DR
Section 143(3)Section 153ASection 245C(1)Section 245D(4)

Anju Bala Sachdeva, New Delhi vs. ACIT Central Circle 18, New Delhi

Appeal are hereby partly allowed

ITA 2887/DEL/2023[2018-19]Status: DisposedITAT Delhi20 Aug 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Naveen Chandraassessment Year: 2018-19 Vs. Acit, Anju Bala Sachdeva, S 286 Ii Floor, Central Circle-18, Greater Kailash Ii, New Delhi New Delhi Pan: Aazps4886P (Appellant) (Respondent) Assessee By Sh. S. P. Gogia, Adv. Department By Sh. Jitender Singh, Cit(Dr)

Section 142(1)Section 143(3)Section 69A

ACIT Central Circle16, New Delhi vs. Krishna Dal Mill Pvt Ltd, New Delhi

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

ITA 1737/DEL/2020[2014-15]Status: DisposedITAT Delhi06 Aug 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri M. Balaganeshacit, Vs. M/S. Krishna Dal Mill Pvt. Ltd, Central Circle-16, C-19, Lawarance Road, New Delhi Pitampura, North West Delhi, Delhi-110035 (Appellant) (Respondent) Pan: Aaack0099E Assessee By : Shri Satyen Sethi, Adv Shri A. T. Panda, Ms. Gargi Sethi, Adv Shri Nirbhay Mehta, Adv Shri Aswani Gupta, Ca Revenue By: Ms. Namita Khurana, Cit-Dr (On Rotational Duty) Date Of Hearing 02/07/2025 Date Of Pronouncement 06/08/2025

For Appellant: Shri Satyen Sethi, AdvFor Respondent: Ms. Namita Khurana, CIT-Dr (on rotational duty)
Section 132Section 143(1)Section 143(3)Section 153Section 245C(1)Section 245D(1)Section 245D(4)

Santosh Agrawal, Chattisgarh vs. Deputy Commissioner of Income-Tax, Central Cirlce-1, Visakhapatnam

In the result, appeal of the assessee is allowed

ITA 150/VIZ/2025[2006-07]Status: DisposedITAT Visakhapatnam13 Jun 2025AY 2006-07

Bench: Shri Veeravalli Durga Rao, Hon’Ble

Section 127Section 143(1)Section 143(2)Section 153ASection 245C(1)Section 245D

Ashok Kumar Agrawal, Visakhapatnam vs. Deputy Commissioner of Income Tax, Central Circle-1, Visakhapatnam

In the result, appeal of the assessee is allowed

ITA 136/VIZ/2025[2006-07]Status: DisposedITAT Visakhapatnam13 Jun 2025AY 2006-07

Bench: Shri Veeravalli Durga Rao, Hon’Ble

Section 127Section 143(1)Section 143(2)Section 153ASection 245C(1)Section 245D

Smt. Renu Sehgal, Jaipur vs. DCIT, Central Circle-3, Jaipur

22. In view of the above discussion, the impugned orders passed by the Learned CIT(A) and the impugned orders u/s 154 of the Act passed by the ACIT deserve to be set aside

ITA 27/JPR/2025[2014-15]Status: DisposedITAT Jaipur24 Mar 2025AY 2014-15

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. P.C. Parwal, C.AFor Respondent: Shri Gautam Singh Choudhary, JCIT
Section 132(1)Section 136Section 143(3)Section 153ASection 154Section 245Section 250

Smt. Renu Sehgal, Jaipur vs. DCIT, Central Circle-3, Jaipur

22. In view of the above discussion, the impugned orders passed by the Learned CIT(A) and the impugned orders u/s 154 of the Act passed by the ACIT deserve to be set aside

ITA 26/JPR/2025[2013-14]Status: DisposedITAT Jaipur24 Mar 2025AY 2013-14

Bench: SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)

For Appellant: Sh. P.C. Parwal, C.AFor Respondent: Shri Gautam Singh Choudhary, JCIT
Section 132(1)Section 136Section 143(3)Section 153ASection 154Section 245Section 250