The Madras High Court dismissed a tax case appeal filed by Shriram Chits Tamilnadu (P) Ltd. against the Income Tax Appellate Tribunal. The court held that dividends received by the appellant as a chit subscriber are not exempt from taxation, following a settled precedent.
Tax case appeal dismissed with no costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 22.02.2022
CORAM
THE HONOURABLE MR.JUSTICE R.MAHADEVAN and
THE HONOURABLE MR. JUSTICE J.SATHYA NARAYANA PRASAD
T.C.A.No.262 of 2011
Shriram Chits Tamilnadu (P) Ltd., No.149, Greams Road, Mount Road, Chennai 600 006. .. Appellant/Appellant Vs.
The Income Tax Officer (OSD) Company Circle VI(2), No.121, Nungambakkam High Road, Chennai 600 034. .. Respondent/Respondent
Tax Case Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal 'A' Bench, Chennai dated 03.12.2010 in ITA No.517/Mds/2010 for the assessment year 2006-07, against the order passed by the Commissioner of Income Tax(Appeals)V, Chennai-34, dated 26.02.2014 made in ITA.No.239/2008-09 and against the order passed by the Assistant Commissioner of Income Tax, Company Circle VI(2) Chennai-34, made in PAN/GIR NO.AABCS0167N dated 31/12/2008.
J U D G M E N T
(Judgment of the court was delivered by R.MAHADEVAN, J.)
This tax case appeal has been filed by the appellant / Assessee, challenging the order of the Income Tax Appellate Tribunal, 'A' Bench, Chennai, in I.T.A.No.517/Mds/2010 for the assessment year 2006-07.
2.By order dated 02.08.2011, this court admitted the aforesaid tax case appeal on the following substantial question of law:
“Whether in law, the dividends received by the appellant as a chit subscriber, is exempt from taxation on grounds of mutuality between all the chit subscribers including the appellant?”
3.When the matter was taken up for consideration, the learned counsel appearing for the appellant fairly submitted that the issue involved herein is covered by a decision of this court in T.C.A. Nos.641 and 642 of 2008, relating to the assessee's own case, in which, the very same substantial question of law raised therein, was decided against the assessee, by judgment dated 16.09.2015. For better appreciation, the relevant paragraph of the said decision is extracted below:
“3.At the outset, it should be pointed out that the assessee is the Foreman in terms of the provisions of the Tamil Nadu Chit Funds Act, 1971. Keeping this in mind, if we have a look at the judgment of this Court in Shriram Chits and Investments (P) Limited Vs. the Assistant Commissioner of Income Tax (T.C.A.Nos.141 and 213 of 2004 and batch), decided on 30.08.2012, it can be seen that the very same question was raised as the third question of law in the said case. In paragraphs 33 and 34 of the judgment dated 30.08.2012, the very same question of law was answered against the assessee. Therefore, on that basis, these appeals are also dismissed. No costs.”
4.Following the aforesaid decision, we answer the substantial question of law against the appellant / assessee and accordingly, dismiss this Tax case Appeal. No costs.
Sd/-
Assistant Registrar(CS-VIII)
// True Copy //
Sub Assistant Registrar
vkr
To
1.The Income Tax Officer (OSD) Company Circle VI(2), No.121, Nungambakkam High Road, Chennai 600 034.
Chennai-34.
T.C.A.No.262 of 2011
BS(CO) CB(09/03/2022)
1 issue framed by the court
Whether dividends received by an assessee as a chit subscriber are exempt from taxation on grounds of mutuality?
Colour shows how this judgement treated each authority
T.C.A. Nos.641 and 642 of 2008Distinguished¶16
Shriram Chits and Investments (P) Limited Vs. the Assistant Commissioner of Income TaxDistinguished¶17
Shriram Chits and Investments (P) Limited Vs. the Assistant Commissioner of Income Tax (T.C.A.Nos.141 and 213 of 2004)
2 provisions across 2 enactments
Shriram Chits Tamilnadu (P) Ltd.
The Income Tax Officer (OSD) Company Circle VI(2)
R.MAHDEVAN
J.SATHYA NARAYANA PRASAD
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
