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TMI Blog1992 (6) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... elied on the order of the Assessing Officer, the learned Advocates for the assessee were ready to concede that the appeals and the cross objection filed by the assessee were without any force. 3. In the present case the assessee did not the a statement of advance tax as required by section 7A(5) of the Act. On6-12-1982it, however, filed a statement of advance surtax estimating its liability at Rs. 9,77,100 which amount was paid before15-12-1982. The Assessing Officer thought that in this manner the assessee reduced its surtax liability for the first two instalments and he, therefore, levied an interest of Rs. 29,124 under section 7D. 4. The assessee appealed to the CIT (Appeals) before whom it was pointed out that the assessee's last comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission of statement fell due on15-6-1982. Therefore, the appellant was liable to furnish the statement on the basis of return income for the assessment year 1982-83 at Rs. 4,31,362. On this amount, the surtax liability comes to Rs. 1,07,845. 1/3rd of this amount worked out to Rs. 35,948. The correct amount of chargeable interest under section 7D with reference to two instalments of 1/3rd amount each worked out to Rs. 3,231. Therefore, the interest charged by the IAC (Asstt.) is hereby reduced to Rs. 3,231 allowing a reduction of Rs. 25,893 to the appellant company." 6. A perusal of the Assessing Officer's order would show that the Assessing Officer has nowhere stated that the assessee was under any obligation to file a statement of advan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1983-84 when computed in accordance with sub-clauses (a) and (b) of sub-section (3) was nil. 8. Sub-section (5) creates the obligation to file a statement/estimate of advance tax. A company which has previously been assessed has to file a statement of advance surtax while a company which has not been previously assessed by way of regular assessment has to file an estimate of advance tax. Sub-section (4) prescribes the dates on which the instalments of advance surtax have to be paid. In this case if any surtax was payable by the assessee then the statement should have been filed on or before the15-6-1982and the amount of surtax would have been payable in three instalments on or before15-6-1982,15-9-1982and15-12-1982. In the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Officer finds that any company has under section 7A underestimated the advance tax payable by it and thereby reduced the amount payable in either of the first two instalments, the company to pay simple interest ...... In this case the assessee had not filed any estimate whatsoever on or before the dates on which the first two instalments were paid. If no estimate has been filed there cannot be an under estimate and, therefore, on plain terms section 7D could not be invoked. It is a case in which the assessee did not file any estimate of advance tax when the first two instalments should according to the revenue, have been paid. Therefore, had there been any obligation on the assessee to file a statement of advance tax prior to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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