https://www.taxtmi.com/caselaws?id=32654 The High Court determined that interest under Section 234B of the Income Tax Act is compensatory in nature. Despite this finding, the Court upheld the deletion of the levy of interest by the Income Tax Appellate Tribunal. The Court emphasized that for the Revenue to charge such interest, it must demonstrate a loss due to the assessee's default. As the assessees were unaware of the interest on enhanced compensation and the Government itself caused delays, the Court concluded that no loss was suffered by the Revenue justifying the interest levy. The appeals were dismissed, with each party bearing its own costs. en-us Fri, 27 Feb 2009 00:00:00 +0530 Sat, 06 Jun 2026 10:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=32654 The High Court determined that interest under Section 234B of the Income Tax Act is compensatory in nature. Despite this finding, the Court upheld the deletion of the levy of interest by the Income Tax Appellate Tribunal. The Court emphasized that for the Revenue to charge such interest, it must demonstrate a loss due to the assessee's default. As the assessees were unaware of the interest on enhanced compensation and the Government itself caused delays, the Court concluded that no loss was suffered by the Revenue justifying the interest levy. The appeals were dismissed, with each party bearing its own costs. Case-Laws Income Tax Fri, 27 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=32654