https://www.taxtmi.com/caselaws?id=361728 A chit fund company was held not entitled to mutuality for foreman dividend because the foreman's rights and obligations differ from those of subscribers and the activity is commercial and profit-oriented; the dividend was therefore taxable. Bad debts relating to running and terminated chits were allowed, as earlier year decisions accepted write-off of irrecoverable amounts from prized subscribers as bad debt or business loss. Commission on cancelled chits was treated as accruing only on final settlement of the defaulting subscriber's account. Royalty paid to the holding company was allowed as business expenditure on grounds of commercial expediency and legitimate business benefit. en-us Fri, 08 Jun 2018 00:00:00 +0530 Wed, 13 Jun 2018 10:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=361728 A chit fund company was held not entitled to mutuality for foreman dividend because the foreman's rights and obligations differ from those of subscribers and the activity is commercial and profit-oriented; the dividend was therefore taxable. Bad debts relating to running and terminated chits were allowed, as earlier year decisions accepted write-off of irrecoverable amounts from prized subscribers as bad debt or business loss. Commission on cancelled chits was treated as accruing only on final settlement of the defaulting subscriber's account. Royalty paid to the holding company was allowed as business expenditure on grounds of commercial expediency and legitimate business benefit. Case-Laws Income Tax Fri, 08 Jun 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=361728