2011 (12) TMI 633

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....ndent : Purna Chanduru ORDER This appeal by the Revenue and is directed against the order of the CIT(A)-II, Hyderabad dated 9.3.2011 for the assessment year 2004-05. 2. The Revenue raised the following grounds of appeal: 1. The order of the CIT(A) is contrary to law. The CIT(A) ought to have sustained the order u/s. 201 & 201(1A) of the Act. 2. The CIT(A) ought to have h....

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....Therefore, the assessee is obligated to cause deduction of tax at source, while remitting dividend or interest as the case may be. 5. The CIT(A) did not consider, or attach any significance to the expression in respect of section 2(28A) refers to "any moneys borrowed or debt incurred (including a deposit, a claim or similar right or obligation). Dividend being nothing but discounted amoun....

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....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 treated as interest. As the payment made/disbursed to the subscribers/members is not interest, therefore, the question of deducting any t....

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....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 face value of the chit. The difference between the face value and the auctioned value during every period is gross dividend generated in thi....