https://www.taxtmi.com/caselaws?id=762042 ITAT Delhi held that interest under section 234A is compensatory, not penal, and accrues only until tax payment date, not return filing date. The assessee deposited interest for one month from due date (31st October 2021) to tax payment (29th November 2021), but revenue computed interest till return filing date (7th March 2022). Following Supreme Court precedent in Prannoy Roy case, ITAT ruled that interest under section 234A ceases on tax payment date regardless of return filing date. Decision favored assessee. en-us Wed, 20 Nov 2024 00:00:00 +0530 Thu, 21 Nov 2024 12:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762042 ITAT Delhi held that interest under section 234A is compensatory, not penal, and accrues only until tax payment date, not return filing date. The assessee deposited interest for one month from due date (31st October 2021) to tax payment (29th November 2021), but revenue computed interest till return filing date (7th March 2022). Following Supreme Court precedent in Prannoy Roy case, ITAT ruled that interest under section 234A ceases on tax payment date regardless of return filing date. Decision favored assessee. Case-Laws Income Tax Wed, 20 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762042