https://www.taxtmi.com/caselaws?id=252696 In chit fund business, a write-off relating to running chits and terminated groups was accepted as deductible bad debt, and alternatively as business loss, where it represented an irrecoverable business outgo linked to defaulting subscribers. Foreman's dividend was held taxable in the assessee's hands because the principle of mutuality does not apply to such commercial receipts of a chit fund company. Disallowances of commission on cancelled chits and royalty payment were deleted on the basis of earlier decisions and the commercial nature of the expenditure. Interest under section 234B was treated as consequential. The Revenue's appeal was dismissed, with substantial relief granted to the assessee. en-us Wed, 29 Oct 2014 00:00:00 +0530 Sat, 01 Nov 2014 08:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252696 In chit fund business, a write-off relating to running chits and terminated groups was accepted as deductible bad debt, and alternatively as business loss, where it represented an irrecoverable business outgo linked to defaulting subscribers. Foreman's dividend was held taxable in the assessee's hands because the principle of mutuality does not apply to such commercial receipts of a chit fund company. Disallowances of commission on cancelled chits and royalty payment were deleted on the basis of earlier decisions and the commercial nature of the expenditure. Interest under section 234B was treated as consequential. The Revenue's appeal was dismissed, with substantial relief granted to the assessee. Case-Laws Income Tax Wed, 29 Oct 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252696