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TMI Blog2006 (1) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... on 7C of the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act") among other things in all a sum of Rs. 96,54,202. Aggrieved by the order made by the Assessing Officer levying interest as stated above, the assessee filed an appeal before the Commissioner of Income-tax (Appeals). The appellate authority sustained the levy of interest. The second appeal filed by the assessee before the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") was also unsuccessful. Under these circumstances, as noticed by us earlier, on the application filed by the assessee, the Tribunal has under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), referred the questions set out hereinbelo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee.-(1) Where, in any financial year, a company has paid advance surtax under section 7A on the basis of its own estimate (including revised estimate), and the advance surtax so paid is less than eighty-three and one-third per cent, of the assessed surtax, simple interest at the rate of fifteen per cent, per annum from the first day of April next following the said financial year up to the date of the regular assessment shall be payable by the company upon the amount by which the advance surtax so paid falls short of the assessed tax." As noticed by us earlier, it is the contention of learned counsel for the assessee that as it had filed only a nil estimate, the assessee was not liable to pay any interest on the amount of surtax finally de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er annum from the first day of April next following the said financial year up to the date of the regular assessment shall be payable by the assessee on the amount by which the advance surtax so paid falls short of the assessed tax so determined by the assessing authority. Therefore, merely because the assessee either files a nil estimate or does not pay the advance surtax as provided under section 7A of the Act, the assessee cannot be allowed to contend that the assessee is not liable to pay interest on the entire surtax made payable by the assessee by the assessing authority. 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 surta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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