2011 (10) TMI 640

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....itioner : Smt. K.Mythli Rani For the Respondent : Shri A.Chandra Mohan Rao ORDER PER ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER These appeals by the Revenue for the assessment years 2006-07 and 2007-08, are directed against similar but separate orders of the Commissioner of Income-tax(Appeals)-V, Hyderabad both dated 26.4.2011. 2. Though elaborate common grounds have been raised in these ....

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.... the payment made/disbursed to the subscribers/members is not interest, the question of deducting any tax at source from it would not arise. In the case of a chit fund, there is no borrowing of money nor any debt is incurred and as such the provisions of section 194A and 2(28A) of the Act are not attracted. 4. Similar view has been taken in the case of Bilahari Investments (P) Ltd., v. CIT, 288....

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....e between the face value and the auctioned value during every period is gross dividend generated in this period. This amount of dividend gets distributed among all the members (subscribers) equally. The members (subscribers) need not pay the total monthly subscription and instead, they pay the monthly subscription after deducting the amount of dividend earned. Members who have bid for the chit in ....