Nil estimate does not avoid statutory interest on advance surtax where section 7(c) conditions are otherwise met.

A timely filed nil estimate under section 7A of the Companies (Profits) Surtax Act, 1964 does not by itself exclude liability to interest under section 7(c) for non-payment of advance surtax. The Tribunal held that reliance on Income-tax Act authorities was unhelpful because they concerned different provisions and facts, and that the assessee's earlier advance payments and exhausted losses and allowances did not provide a basis to avoid the statutory interest charge. The levy of interest under section 7(c) was therefore sustained.

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Issues: Whether interest under section 7(c) of the Companies (Profits) Surtax Act, 1964 was leviable for non-payment of advance surtax where the assessee had filed a nil estimate under section 7A of the Act pending approval of amalgamation-related relief.

Analysis: The assessee had filed a nil estimate within time, but the estimated non-payment of advance surtax was not accepted as a sufficient answer to the statutory liability for interest. The Tribunal examined the assessee's reliance on decisions under the Income-tax Act and found them inapplicable because those cases dealt with materially different provisions or facts. It also held that the assessee's position did not lead to an acceptable basis for avoiding interest under section 7(c), particularly in view of the earlier payment of advance surtax and the exhaustion of the relevant losses and allowances.

Conclusion: Interest under section 7(c) of the Companies (Profits) Surtax Act, 1964 was rightly levied and the contention against such levy was rejected.

Final Conclusion: The assessee's challenge to the interest demand failed and the levy was sustained.

Ratio Decidendi: A timely filed nil estimate does not, by itself, exclude liability to interest under section 7(c) of the Companies (Profits) Surtax Act, 1964 when the statutory conditions for levy are otherwise attracted.

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