https://www.taxtmi.com/caselaws?id=64942 Chit transactions involving an assessee's own chits were analysed under the Chit Funds Act, 1961 and the company bye-laws to determine whether the bid amount, dividend and related commission entries fell within mutuality. The arrangement was treated as dealings between the company and its members within a mutual framework, with only commission for services rendered to members being taxable under section 28(iii) of the Income-tax Act, 1961. The bid loss claimed on own chits was described as arising from mutual transactions rather than a deductible business loss, and the corresponding receipts connected to those mutual dealings were not taxable. en-us Mon, 21 May 1990 00:00:00 +0530 Fri, 11 Feb 2011 12:49:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=64942 Chit transactions involving an assessee's own chits were analysed under the Chit Funds Act, 1961 and the company bye-laws to determine whether the bid amount, dividend and related commission entries fell within mutuality. The arrangement was treated as dealings between the company and its members within a mutual framework, with only commission for services rendered to members being taxable under section 28(iii) of the Income-tax Act, 1961. The bid loss claimed on own chits was described as arising from mutual transactions rather than a deductible business loss, and the corresponding receipts connected to those mutual dealings were not taxable. Case-Laws Income Tax Mon, 21 May 1990 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=64942