2011 (9) TMI 1068

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....CIAL MEMBER For the Appellant : Shri P. Peerya For the Respondent : Shri V. Siva Kumar ORDER PER CHANDRA POOJARI, A.M. The above four appeals by the Revenue are directed against the separate orders of the CIT(A)-II, Hyderabad dated 14.2.2011 for assessment years 2004-05 to 2007-08. Since the issue involving in all these appeals is common, these appeals were heard together and are be....

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.... treated as interest. As the payment made/disbursed to the subscribers/members is not interest, therefore, 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 Bilahar....

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....ce value of the chit. The difference 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. Me....