1984 (4) TMI 41

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..... s been referred to this court for its opinion by the Income-tax Appellate Tribunal: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 2,188 and Rs. 3,145 being the chit kasar received by the assessee from the Bank of Madurai Limited should be treated as casual and non-recurring in nature and that exemption under section 1 .....

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..... her question as to whether the amounts of dividend which have been considered to be income, were casual and non-recurring so as to enable the assessee to claim the benefit of s. 10(3) of the Act. The Tribunal held, that as there is no certainty of getting the dividend and more so the quantum of such dividend, as that would depend on the amount of bid at every auction, the receipt should be taken t .....

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..... at every month the chit is conducted in accordance with the relevant bye-laws of the bank which have been treated as part of the agreement. Clause 7 of the bye-laws for the monthly chits provides that the dividend in each chit is distributed equally among the subscribers not by way of actual payment but by way of reduction from the next instalment subscription and such reduction will be shown as c .....

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