9911796707
TMI Blog2006 (1) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... e than sixteen and two-thirds per cent. - When an obligation is created to pay surtax under section 7A and the liability is also created to pay interest on the difference of advance surtax paid and the surtax made payable by the assessee as determined by the assessing authority, the assessee for his default either in not paying the advance surtax or by filing a nil estimate cannot escape his liability to pay interest in terms of section 7C - - - - - Dated:- 30-1-2006 - Judge(s) : P. VISHWANATHA SHETTY., C. R. KUMARASWAMY. JUDGMENT The judgment of the court was delivered by P. Vishwanatha Shetty J.-The assessee is a public limited company registered under the Indian Companies Act, 1956. It is engaged in the manufacture of wines and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a nil estimate, it was not permissible for the assessing authority to direct the assessee to pay interest on the amount of surtax finally determined in the order of assessment. According to learned counsel, the assessee is liable to pay interest as prescribed under section 7C of the Act, only if the assessee fails to pay the advance tax in terms of section 7A of the Act and he is not liable to pay interest in cases where he does not file the return or files nil return. Section 7A of the Act provides for advance payment of surtax. Section 7C of the Act provides for payment of interest by an assessee if the difference of advance surtax paid by the assessee under section 7A on the basis of his own estimate is less than eighty-three and one-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r for the immediately following assessment year. The procedure for remitting the advance tax is provided under section 7A of the Act. Section 4 of the Act is the charging section. It provides for levy of surtax. When an assessee is required to pay advance surtax under section 7A of the Act on the basis of estimated income, the default in payment of advance surtax on estimated income by filing only a nil estimate, in our view, should not enure to the benefit of the assessee to contend that it is not liable to pay interest, on the ground that it has filed only a nil estimate and he has not paid the advance surtax. Sub-section (1) of section 7C of the Act makes it clear that where, in any financial year, an assessee has paid advance surtax und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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