2014 (2) TMI 456

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....by the Revenue for the assessment years 2005-06 to 2007-08 are directed against similar but separate orders of the Commissioner of Income-tax(Appeals)-II, Hyderabad all dated 24.5.2011. Since a common issue is involved, these appeals are being disposed of, with this common order for the sake of convenience. 2. Though elaborate common grounds have been raised in these appeals, the only common issu....

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....ilar issue, viz. nature of chit dividend paid/credited, came up for consideration in the case of Marga Soochi Chit Pvt.Ltd., in I.T.A. No. 995/Bang/2008 and also in the case of Sahib Chits (Delhi) (P) Ltd., before the Delhi High Court in I.T.A. No. 44 of 2008 order dated 24.7.2009 wherein it was held that the amount disbursed by a chit fund company to the members from the contribution cannot be tr....

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....er of periods is the same. At the end of each period, there is an auction of the chit. The members of the chit participate in this auction for the pooled money during that interval. The bid amount is divided by the number of members thus determining the contribution per head during that period. When the chit is auctioned every month, the bidder takes the chit for an amount which is less than the f....

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....wing the ratio laid down by various courts in the cases noted above, it has been consistently held by the coordinate Benches of this Tribunal,as in ITA Nos.804/Hyd/2011 for assessment year 2005-06 in the case of M/s. Vipanchi Chit Funds Ltd. and Anr, dated 11th August, 2011; and in ITA No.1280 and 1281/Hyd/2011 in Vinutna Chit Funds (P)Ltd., Hyderabad, dated 31.10.2011, that the payment to the sub....