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2015 (7) TMI 51 - KARNATAKA HIGH COURTLiability to deduction of TDS under Section 194(A) - whether the chit dividend paid by the assessee to its customers would not amount to interest as defined under Section 2(28A)? - Held that:- The Delhi High Court had an occasion to consider the same substantial question of law in the case of CIT v. Sahib Chits (Delhi) (P.) Ltd. [2009 (7) TMI 75 - DELHI HIGH COURT] wherein after setting out the statutory provisions namely, Section 2(28A), the provisions of the Interest Act, 1974 and noticing various judgments held, in the first place the amount paid by way of dividend cannot be treated as interest. Further, Section 194(A) of the Act has no application to such dividends and therefore it held there is no obligation on the part of the assessee to make any deductions under Section 194(A) of the Act before such dividend is paid to its subscribers of the chit. The aforesaid judgment squarely applies to the facts of these appeals. Hence, we do not see any merit in these appeals. Decided in favour of the assessee.
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