9911796707
TMI Blog2015 (7) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... antial question of law in the case of CIT v. Sahib Chits (Delhi) (P.) Ltd. [2009 (7) TMI 75 - DELHI HIGH COURT] wherein after setting out the statutory provisions namely, Section 2(28A), the provisions of the Interest Act, 1974 and noticing various judgments held, in the first place the amount paid by way of dividend cannot be treated as interest. Further, Section 194(A) of the Act has no applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) of the Income Tax Act (hereinafter referred to as 'Act') and consequently no deduction of TDS under Section 194(A) of the Act is required to be made. 2. The assessee is a private limited company being assessed in the status of a company engaged in the business of chit fund. The assessee has several chit groups which are formed by having 25 to 40 customers to make one chit group. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in an auction took the face value or the prize money earlier to the period to which he was entitled, he is liable to pay an amount to others who contributed to take prize money which was termed as interest. This interest amount, which had been paid by the assessee to its members was liable for deduction of tax under Sections 2(28A) and 194(A) of the Act. The assessee had failed to do so. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Authorities were correct in holding that the chit dividend paid by the assessee to its customers would not amount to interest as defined u/s.2(28A) of the Act and consequently no deduction TDS u/s.194A of the Act need be made as definition of dividend contemplated under the Chit Fund Act should be adopted and not as per the Income Tax or the other law applicable? 6. We have heard the le ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
