M/S.Shriram Chits India Private ... vs The Deputy Commissioner Of Income ...

                 THE HON'BLE SRI JUSTICE P.SAM KOSHY
                                         AND
                 THE HON'BLE SRI JUSTICE N.TUKARAMJI
                       I.T.T.A. Nos.41, 311 of 2012, 455 of 2014,
              134, 135, 136, 412 of 2015, 564 of 2011 and 5 of 2022
COMMON JUDGMENT:(per Hon'ble Sri Justice P.SAM KOSHY)

           Heard Mr.Sivaraman, learned counsel for the appellant and

      Mr. J.V.Prasad, learned Senior Standing Counsel for the Department.

      Perused the material available on record.


      2. These are appeals which have been filed by the assesee questioning

      the order passed by the Income Tax Appellate Tribunal (for short

      'ITAT'), so far as rejecting the appellants claim for exemption of chit

      fund income on the principles of mutuality on the ground that the

      appellant is a business concern.


      3. It has been informed at the bar that the issue already has been

      decided by the Division Bench of this very High Court itself in a batch

      of appeals in I.T.T.A.Nos.296 of 2006 and other connected appeals

      which were decided on 30.11.2022. This High Court relying upon the

      earlier judgment of this very High Court, in the case of Commissioner

      of Income Tax vs. Kovur Textiles 1, whereby, it has been held by the



1
    (1982) 136 ITR 61 AP.
                                     2



  Division Bench of this Court that the principle of mutuality cannot be

  extended for the income earned by a Chit Fund Company. This

  judgment still holds good.


  4. Given the fact that similar appeals had also been listed last week

  before this Court, where again in a bunch of appeals, this Court had

  allowed the appeals in favour of the Revenue and against the assessee,

  vide order dated 02.11.2023 in ITTA.Nos.324 of 2006 and other batch

  matters. In view of the same, the instant appeals also stand decided in

  terms of the order passed by this Court in the aforesaid matters i.e., in

  the case of Commissioner of Income Tax vs. Kovur Textiles and also

  the batch matters decided by this very bench i.e., on 02.11.2023

  referred to in the preceding paragraph. Thus, these appeals are

  accordingly rejected with the question of law being decided in favour

  of the Revenue.


  5. As a sequel, miscellaneous applications pending if any, shall stand

  closed. No order as to costs.


                                                     _________________
                                                      P.SAM KOSHY, J

                                                     _________________
                                                      N.TUKARAMJI, J

07.11.2023

Aqs