9911796707
TMI Blog1999 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... -------------------------------------------------------------------------- "Asst. Current Amount Date of Amount Date of Year chargeable of Adv. payment assessed assessment amount S. Tax paid --------------------------------------------------------------------------------------------------------------------------------------------------- 1. 2. 3. 4. 5. 6. ---------------------------------------------------------------------------------------------------------------------------------------------------1982-83 7,12,907 2,73,559 15-12-1981 11,41,950 20-11-1987 1983-84 6,59,200 2,02,767 15-12-1982 12,50,450 20-11-1987 1985-86 63,000 15,750 13-12-1984 4,78,177 31-10-1988 1986-87 4,43,700 85,925 12-12-1985 12,03,962 31-10-1988" --- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, therefore, it was not required to file any statement of advance surtax for the assessment years under appeal. It was, therefore, urged that the penalties not being in order be cancelled. The alternative submission was that these were excessive and these be suitably reduced. 4. The aforesaid submissions found favour with the CIT(Appeals) for the assessment years 1982-83, 1983-84 and 1985-86 and he proceeded to cancel the penalties. The CIT(Appeals) held that there was no obligation under the law on the part of the company to submit either the statement of advance surtax payable or the estimate of advance surtax payable and these had been filed purely on a voluntary basis. It was noted as a fact that there was no regular assessment compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed our attention to the provisions of sub-section (5) of section 7A contending that clause (b) of the said sub-section took care of a situation where an assessee had not previously been assessed by way of regular assessment. According to him, even such an assessee was required to file an estimate of the current chargeable amount and pay the advance surtax accordingly. 6. We have examined rival contentions and before we proceed further, we would like to set out the relevant provisions of law with which we would be dealing in the present cases as follows 'Advance payment of surtax. 7A. (1) In this section : (a) 'chargeable amount', in relation to any previous year, means so much of the chargeable profits of the previous year as exceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate on which the first instalment, or where it has not previously been assessed by way of regular assessment under this Act, on or before the date on which the last instalment of advance surtax is due in its case under sub-section (4), if it is likely to have any current chargeable amount, sent to the Income-tax Officer,--- (a) where it has been previously assessed by way of regular assessment under this Act, a statement of advance surtax payable by it computed in the manner laid down in sub-section (3), or (b) where it has not previously been assessed. by way of regular assessment under this Act, an estimate of--- (i) the current chargeable amount, and (ii) the advance surtax payable by it on the amount specified in (i) above cal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to earlier, i.e., a previous year where a regular assessment has been completed and the surtax is to be calculated on the chargeable amount referred to either in one or the other at the rates specified. In other words, the provisions of sub-section (5), sub-clause (b) are not workable and where such a situation arises an assessee cannot be foisted with the liability to pay advance surtax under the Companies (Profits) Surtax Act, 1964 since the working of the current chargeable amount and the advance surtax payable has to be in accordance with the provisions of sub-section (3) which in turn speaks of, in clause (a) - an assessment by way of regular assessment and in clause (b) - a provisional assessment and clause (b) of sub-section (5) ref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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