https://www.taxtmi.com/caselaws?id=62751 The Revenue's appeal challenging the direction of the CIT(A) to not charge interest under sections 234A and 234B of the Income Tax Act was dismissed. The Tribunal ruled that interest on compensation/enhanced compensation is taxable only upon final settlement of the related dispute, which occurred after the due date for filing the return of income and paying advance tax. As the assessee could not foresee the need to pay advance tax or file the return due to the ongoing dispute, interest under sections 234A and 234B was not applicable. The decision emphasized the impossibility for the assessee to meet these obligations before the dispute resolution. en-us Wed, 31 Oct 2007 00:00:00 +0530 Fri, 21 Jan 2011 14:05:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62751 The Revenue's appeal challenging the direction of the CIT(A) to not charge interest under sections 234A and 234B of the Income Tax Act was dismissed. The Tribunal ruled that interest on compensation/enhanced compensation is taxable only upon final settlement of the related dispute, which occurred after the due date for filing the return of income and paying advance tax. As the assessee could not foresee the need to pay advance tax or file the return due to the ongoing dispute, interest under sections 234A and 234B was not applicable. The decision emphasized the impossibility for the assessee to meet these obligations before the dispute resolution. Case-Laws Income Tax Wed, 31 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62751