Dismissed

M/S. Shriram Chits Private Limited v. Deputy Commissioner of Income Tax

Telangana HC2 Nov 2023ITTA/148/2008

Case brief

AI extract

What is this about?

This common judgment rejected five income tax appeals by Shriram Chits Private Limited against orders confirming the addition of dividend income. The High Court relied on its own Division Bench decision in Commissioner of Income-Tax vs. Kovur Textiles, affirming the Tribunal's rejection of the exemption claim on the ground that the appellant is a business concern.

What did the court decide?

The appeals are rejected. There shall be no order as to costs.

M/S. Shriram Chits Private Limited Vs Deputy… — Writ and Judicial Review | Telangana HC (2023)

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

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THURSDAY, THE SCOND DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE

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PRESENT

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THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARA{I'JI

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T.T.A 262 ol 7 324 ot 006 148 of2008

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3{)9 of 2O19 and 319 of 2019

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l.T.T.A.No.262 of 2fi)7

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lncome Tax Tribunal Appeal Under Section 260-4 of the lncome Tax Act, 1961 arbing out of the order of the lncome-Tax Appetlate Tribunal. Hyderabad Bench ' B ' Hyderabad, in l.T.A.No.58/Hydlm$, Assessment Year 1996-p7, dated 29-12-2006, preferred against the Order of the Commissioner of lncome Tax (Appeals)-lV, Hyderabad, Appeal No.391 /JCSR-4/ClT(A)-lV/200 1 -O2, dated :2 6- 1 1 -2OO2, preferred against the Order of the Joint Commissioner of lncome Tax (Assts.), Special Range - 4, Hyderabad PAN/GlR No.S-122dated 31-03-99.

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Between:

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Striram Chits Private Limited, lll Floor, Anand Estates, Himayathna gar, Hyderabad, represented by its Drector, Mr. R. Druvasan, S/o Sri A. Ramacfiandra MftJu, aged 46 years, resident of Hyderabad.

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...APPELLANT

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AND

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Joint Commissioner of lncorne Tax, [Assts], Special Range-4, Hyderabad.

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...RESPONDENT

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Counsel for the Apfllant: SRI K. MAHESWARA RAO

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Counsel for the Respondent: SRI J.V. PRASAD {SC FOR lNCOlt E TAX)

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1-..'

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l.T.T.A. No.324 of 2006

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lncome Tax Tribunal Appeal Under Section 260-4 of the lncome Tax Act, 1961 arising out of the order of the lncome-Tax Appellate Tribunal, H /derabad Bench^' B^' Hyderabad, in l.T.A.Nos.19'16 to 1919/Hyd/'1996, Assessment^'/ear 1991-92, dated 31-01-2002, preferred against lhe Order of the Commissioner of lncome Tax (Appeals), Hyderabad, Appeal No.lTl16812324195-96 and lR/539 DC(A.Vy96-97, dated:16-08-96, preferred against the Order of the Deputy Commissioner of lncome Tax , Hyderabad PAN/GIR No.S-7 dated 08-02-1995-

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Between:

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M/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 500 029, Represented by its Executive Direclor, Mr. R.Duruvasan.

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...APPELLANT

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AND

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The Deputy Commissioner of lncome Tax, [Assts] Special, R€rnge-s, Hyderabad. ...RESPONDENT

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Counsel for the Appellant: SRI K. IvIAHESWARA RAO

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Counsel for the Respondent: SRI J.V. PRASAD^(SC FOR lNCr)ME TA") l.T.T.A-No.148 of 2008

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lncome Tax Tribunal Appeal Under Section 260-A of the lncome Tax Act,¹⁹⁶¹ arising out of the order of the lncome.Tax Appellate Tribunal, Hyderabad Bench^' B^' Hyderabad, in l.T.A.No.1161tHl2OO4, Assessment Year 2001-2002, dated 1-1^1- 2007, preferred against the Order of the Commissioner of lncome Tax (Appeals) lV, Hyderabad, Appeal No.89/AC-3(1yClT(A)-lV/2004{5, dated:27-09-2003,^preferred against the Order of the Commissioner of lncome Tax Department ,^Hyderabad PAN/GIR No.AAFCS4916D I 5-122 dated 31-03-2004.

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Between:

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M/s. Shriram Chits Private Limited, 3-5-909, Himayathnager,^Hyderabad -^5O0 029, Represeflted by its Executive Director, Mr. R.Duruvasan.

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...APPELLANT

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AND

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Deputy Commissioner of lrrcorne Tax, Circle 3(1), Room No. 61 1, 6th Floor, Aayakar Bhavan, Basheerbagh, Hyderabad-5OOO04.

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...RESPONDENT

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I Counsel for the Appellant: SRI K. MAHESWARA RAO

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Counsel for the Respondent: SRI J.V. PRASAD (SC FOR INCOME TAX)

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l.T.T.A"No.309 of 2019

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lncome Tax Tribunal Appeal Under Sec{ion 26O-4 of the lncome Tax Act, 1961 arising out of the order of the lncome-T3x Appeihte Tribunal, Hyderabad Bench ' B ' Hyderabad, in l.T.A.No.1992lHYDl2O17, Assessment Yat 2013-2014, dated 08-O62018, prefened against the Order of the Commissioner of lncorne Tax (Appeals) 3, Hyderabad, lTA.No.0554lDClT/Cir-3(1/C|T(AY31201G17, dated:1'l-0S2017, prefered against the Order of tfie Deputy Commissioner of lncome Tax Ckcle-3(1), Hyderabad PAN/GIR No.AAFCS4916D dated 31-03-2016.

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Betwem:

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[rl/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 5OO 029, Represented by its Drec{or, K. Srinivas.

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...APPELLANT

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AND

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Oeputy Commissioner of lncome Tax, Cirde 3(1), Hyderabad.

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...RESPONDENT

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Counsel for the Appel{ant: SRI K. MAHESWARA RAO

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Counsel for the Respondent: SRI J.V. PRASAD (SC FOR INCOME TAX)

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<.+

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T.T.A.No.319 of 2019

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lncome Tax Tribunal Appeal Under Section 260-A of the ln<nme^Tax Act,¹⁹⁶¹ arising out ol the order of the^{lncome-TaxAppellate Tribunal, HyderabadBench ' B '} Hyderabad, in^I T.A.No.1993^{tHYDt2O17,Assessment Year2014-2015, datedO8-OG} 2018,^preferred against the Order of^{the Commissioner of lnconreTax (Appeals)3,} Hyderabad, lTA.No.0554/DCIT/C|r-3(1 /ClT(A)-312016-17 , dated:1 1-09-2017, preferred against the Order of the Deputy Commissioner of lncome^{Tax Circle-3(1),} Hyderabad PAN/GI R^{No.AAFCS4916D dated 31 -03-201 6.}

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Between:

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M/s, Shriram Chits Private Limited,^{3-5-909, Himayathnagar, Hyderabad} -^5OO 029, Represented by^its Director,^{K. Srinivas.}

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...APPELLANT

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AND

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Deputy Commissioner of^{lncomeTax, Circle3(1), Hyderabad}

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...RESPONDENT

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Counsel for the Appellant:^{SRI K. MAHESWARARAO}

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Counsel for the Respondent:^{SRI J.V.PRASAD (SC FOR INCOME TAX)}

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The Court delivered the following:^{COMMONJUDGMENT}

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THE HON'BLE SRI JUSTICE P.SAM KOSIry AND THE HON'BLE SRI JUSTICE N. TUI(ARAMJI

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I.T.T.A.Nos.262 OF 2OO7, 324 0F 2006, L4A OF 2008, 3O9 OF 2O19 and 319 OF 2019.

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COMMON JUDGMENT: (per Hon'ble Sri Justice P.SA KOSII,

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These appeals are filed under Section 260-A of the Income Tax Act, 1961, in respect of the same Assessee for the Assessment Years I 992- 1 993, 1996-1997, 2OO I -2OO2, 20^| 3 - 14, and 20 | 4 -2O 75, respectfully.

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The questions of law raised to be considered in the present appeals are as follows:-

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" 1. Wlether on the facts and in the ciranmstances of the case, the Income Tox Appellate Tibunal uas correct in laut in rejecting the Appellnnt's claim for exemption of the diuid.end income on tlre pincipal oJ mutualitg on the ground that the Appellant i,s a business concem.

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Whether on the fac* and in tLe circum.stances of the case, the Income Tox Appellate Tribunal utas correct in law in ignoring the fort tlwt uthen the Appellaru subscribed to a chit, it does so in its character as a subscriber."

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Today when the matter is taken up for hearing, the learned counsel appearing for the parties produced a decision of the Division Bench of this Court in respect of the very same Assessee in I.T.T.A.No.296 of 20O6 and batch, decided on 13.11.2022. The Division Bench, relying upon the decision

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P.CI(.J & ATTR,J I.T.T.A.No.262 OF 2OO7 a.nd Batch

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rendered in Cornmissioner of Income-Trl,x Vs. Kovur Textllesl, had answercd the qucstion of law against the appellant - Assessee and in favour of the Revenue Dr:partment.

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Given the fact that the Division Bench of this Court has already considered and decided an identical issue, vrc are of the considered opinion that thc present appeals also dr:sr:rve to be rejected in the light of the aforesaid decision o[ th<: Division Bench of this Court in I.T.T.A.No. 296 of 2OO6 and batch, decided on 3O. 1 1.2022.

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