https://www.taxtmi.com/caselaws?id=259057 Receipts and payments integral to the chit fund mechanism, governed by the scheme bye-laws, were treated as business items: interest earned on separately kept advance subscriptions was business income, and interest paid on advance instalments was allowable as business expenditure. The section 14A disallowance linked to exempt dividend income was held to require a reasonable estimate and was restricted to 5% of the exempt dividend income. Dividend paid to chit subscribers was not treated as interest, so no tax deduction obligation arose and the section 40A(ia) disallowance was unsustainable. en-us Wed, 24 Sep 2014 00:00:00 +0530 Tue, 28 Apr 2015 12:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=259057 Receipts and payments integral to the chit fund mechanism, governed by the scheme bye-laws, were treated as business items: interest earned on separately kept advance subscriptions was business income, and interest paid on advance instalments was allowable as business expenditure. The section 14A disallowance linked to exempt dividend income was held to require a reasonable estimate and was restricted to 5% of the exempt dividend income. Dividend paid to chit subscribers was not treated as interest, so no tax deduction obligation arose and the section 40A(ia) disallowance was unsustainable. Case-Laws Income Tax Wed, 24 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=259057