TaxTMI 
TaxTMI 
2012 (2) TMI 468
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....ein the only issue involved is with regard to disallowance udnerS.40(a)(ia) of the Act for non-deduction of tax at source on dividend/interest paid to the chit subscribers of Rs. 308,89,44,084. Effective grounds of the Revenue in this appeal read as follows- "1. ..... 2. The learned CIT(A) should have noticed from the case-laws relied on by him that nowhere in the judgments the Courts have disputed that there is no benefit/advantage/profit to the nonbidders/ chit subscribers. 3. The learned CIT(A) failed to notice that in the case of Bilahari Investments (P) Limited V/s. CIT, the case law relied on by him, the Hon'ble Madras High Court itself recognized that the Chit Fund Scheme is a kind of saving scheme. Thus, the discount,/dividend cr....
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....eto, in the context of proceedings initiated by the assessing officer, under S.201 and 201(1A) of the Act, dealing with the cross-appeals in the case of Vipanchi Chit Funds Ltd., (ITA No.804-805/Hyd/2011), the Tribunal vide its order dated 11th August, 2011, following the earlier decisions of the Bangalore Bench of the Tribunal in the case of Marga Soochi Chit Pvt. Ltd. in ITA No.965/Bang/2008);besides of the Hon'ble Delhi High Court in the case of Sahib Chits(Delhi)(P)ltd. in I.T.A. No.44 of 2008 dated 24.7.2009; and of the Hon'ble Madras High Court in the case of CIT V/s. Bilahari Investment Pvt. Ltd.(288 ITR 39), which has been affirmed by the Apex Court in 299 ITR 1, held that the payment of dividend to the subscribers of a chit towards....
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....certain decisions in the grounds of this appeal, in the absence of any contrary decision of jurisdictional High Court or Apex Court brought to our notice by the Revenue, we are inclined to follow the consistent view taken by the Tribunal in similar matters, discussed above rendered by the coordinated Benches of this Tribunal, to some of which both of which are parties, involving the determination of nature of 'dividend' distributed by the assessee-company among its chit subscribers month after month, and also following in that process the decision of the Hon'ble Madras High Court in the case of Bilahari Investments (P)Ltd.(288 ITR 39), and hold that the dividend distributed by the assessee herein does not partake the character of 'interest'....
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....ased on arbitrariness and whims and fancies of the individuals presiding over the courts or the tribunals and not reached objectively on the basis of the facts placed before the authorities. If a Bench of a Tribunal on the identical facts is allowed to come to a conclusion directly opposed to the conclusion reached by another Bench of the Tribunal on an earlier occasion, that will be destructive of the institutional integrity itself. ...." In this view of the matter, the provisions of S.40(a)(ia) of the Act are not attracted, and accordingly the CIT(A) was justified in deleting the addition made by the assessing officer by resorting to disallowance in terms of S.40(a)(ia) of the Act.. We accordingly uphold the order of the CIT(A) and dismi....
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....r depreciation by Rs. 69,98,459 and lower income from business. Without taking into account this revised computation, the assessing officer has completed the assessment, adopting the assessee's income from business at Rs. 69,18,98,030 as disclosed in the return originally, as against Rs. 69,88,96,489 determined in the revised computation filed, as noted above, during the course of assessment proceedings. On appeal, the CIT(A), taking note of the fact that the assessee did not produce any depreeciati0on schedule to substantiate the claim of the assessee, and in the absence of any evidence to show that depreciation has been wrongly calculated or the exact depreciation schedule, rejected the contention of the assessee and upholding the action ....