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TMI Blog2015 (7) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT The revenue has preferred these appeals against the order passed by the Authorities, holding that the chit dividend paid by the assessee to its customers would not amount to interest as defined under Section 2(28A) of the Income Tax Act (hereinafter referred to as 'Act') and consequently no deduction of TDS under Section 194(A) of the Act is required to be made. 2. The assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bers in the auction chit will earn dividend and the successful bidders will be entitled to retain the face value till the stipulated period under the scheme. The revenue took the view that when the successful bidder in an auction took the face value or the prize money earlier to the period to which he was entitled, he is liable to pay an amount to others who contributed to take prize money which w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs and dismissed the appeals. Aggrieved by these two orders, the revenue is in these appeals. 5. The substantial question of law that arises for consideration in these appeals is as under: "Whether the Appellate Authorities were correct in holding that the chit dividend paid by the assessee to its customers would not amount to interest as defined u/s.2(28A) of the Act and consequently no deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake 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. The substantial question of law is answered in favour of the assessee and against the revenue and hence, we pass the following: ORDER Appeals are dismissed. No costs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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