Sec 234A Interest cannot be levied on delayed ROI if SA tax is paid before due date

Section 234A of the Act, has come to the conclusion that interest is not a penalty and that the interest is levied by way of compensation to compensate the revenue in order to avoid it from being deprived of the payment of tax on the due date. The High Court also held that interest would be payable in a case, where tax has not been deposited prior to the due date of filing of the income-tax return.

Supreme Court of India

CIT vs Pranoy Roy

Civil Appeal No. 448 of 2003 with C.A. No. 3125 of 2006

Equivalent Citations-  179 Taxman 53, 222 CTR 6, 309 ITR 231

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