1989 (7) TMI 40

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....y S. S. SODHI J. -The matter here pertains to two questions referred for the opinion of this court the first of which stands covered by our earlier decision in Income-tax Reference No. 36 of 1981 (New Suraj Financiers and Chit Fund Co. Pvt. Ltd. v. CIT [1989] 179 ITR 476) decided on March 14,1989. The question read as under: "Whether, on the facts and circumstances of the case, when incom....

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....8 received as interest was chargeable to -tax as the income of the assessee-company for the assessment year 1972-73 ?" To explain the factual background giving rise to this question, the assessee was running two chit funds, one known as "Premium Deposit Scheme II" and the other "Premium Deposit Scheme III". The broad features of these schemes were that subscribers had to pay Rs. 500 and Rs. 400....

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....entire period of the scheme. It is in these circumstances that the question posed came to be referred for the opinion of this court, the sum mentioned therein being the amount received by the assessee as interest under the schemes, i.e., Rs. 150 and Rs. 100 per subscriber, respectively. No exception can be taken to the view taken by the Tribunal that the amount in question must be held to be ch....