ThynkTax /Tax Reference /Case Laws /Hindustan Bulk Carriers

Hindustan Bulk Carriers

Supreme Court of India·2003·ITR
Facts

Computation of interest under Section 234B / 234C for non-payment of advance tax.

Issue

Whether interest can be charged on tax payable under Section 234B when assessment is later modified?

Held

Interest is mandatory and compensatory in nature; calculated on assessed tax minus advance tax.

Ratio

Interest under Sections 234A-C is automatic, not discretionary.

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