Subscription to chit funds cannot be regarded as investment U/s. 13(1)(d) RW 11(5)

Sri Sivani Educational Society Vs. ITO (ITAT Visakhapatnam) Chit fund business is governed by the principles of mutuality and contribution to a chit fund is contribution to oneself on the principle of mutuality and hence, it is not an investment as contemplated by section 13(1)(d) read with section 11(5) of Income Tax Act, 1961. As it was held that contribution to chit fund in this case, was not an investment, and much less an investment with someone else, and further that the provisions of section 11(1)(a) had been complied with by investing the entire income of the year towards charitable pu...