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2014 (2) TMI 456 - AT - Income TaxNon deduction of TDS on dividend / premium on chit fund – Interest u/s 2(28) of the Act comes within the purview of section 194A of the Act or not – Held that:- The decision in Bilahari Investments (P) Ltd., v. CIT [2006 (6) TMI 59 - MADRAS HIGH COURT] - The members (subscribers) need not pay the total monthly subscription and instead, they pay the monthly subscription after deducting the amount of dividend earned. Members who have bid for the chit in auction have the liability to keep the contribution to the chit till the end of the chit period and the prized members get dividend in future months also - the payment to the subscribers of a chit towards dividend does not partake the character of interest - the orders of the CIT(A) upheld in holding that the assessee is not liable to deduct TDS u/s 194A of the Act – thus, not liable for interest u/s. 201(1) and 201(1A) of the Act – Decided against Revenue.
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