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Case Law Details

Case Name : CIT Vs Sahib Chits (Delhi)(P.) Ltd. (Delhi High Court)
Related Assessment Year :
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RELEVANT PARAGRAPH

10. The question raised before us is with regard to the taxability of the discount allotted to the subscribers of the chit, which as per the counsel for the appellant is in the nature of “interest ” in the hands of such subscribers and not “dividend “.Thus, it may be noted that the term „interest ., as defined under the Act, specifically speaks of “moneys borrowed or debt incurred (including a deposit, claim or

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3 Comments

  1. vemulapati Ravindra says:

    A assessee firm is operating a chit fund business and it collects subscriptions from the chit subscribers and makes payment of chit amount to the successful bidder of the chit.

    can the chit payment to the successful bidder can be made by way of cash ?

    Can the chit subscription amount received be in cash?

    if yes, What shall be the limitation?

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