TMI Blog2007 (8) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Income Tax Appellate Tribunal Madras 'C' Bench made in I.T.A.No.1664/2004 dated 16.3.2007. The relevant assessment year is 1997-98. The substantial question of law formulated for entertainment of the appeal is as follows:- Whether on the facts and circumstances of the case, the Tribunal was right in law in holding that the loss incurred by subscribing to a chit is not al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not give rise to any income assessable to income tax by rejecting the contention of the appellant that he had been financing his business by subscribing to chits and the bid amount was deposited with the bank, that the amount foregone on chits after adjustment of dividend earned is treated as interest payments and hence the interest payments is allowable as deduction. As against the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not able to countenance the arguments of the learned counsel appearing for the appellant for the simple reason that the business of the assessee is only interior decorator and the investment in the chit and bidding chit for lower amount would not in any way have nexus with the business of the appellant. To be a member of the Chit fund was not the business of the appellant. The chit transaction be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the chit fund could not be treated as revenue expenditure nor could the payment and receipt of any amount to any from the chit fund be treated as the business activity of the assessee. The transactions involved did not give rise to any income assessable to income-tax nor any revenue loss in respect of which any deduction could be claimed. Therefore, the Tribunal was right in disallowing the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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