9911796707
TMI Blog1964 (12) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... ENT Srinivasan, J.- The assessee is the Arcot Dhanasekhara Nidhi Ltd. It carries on chit fund business, receives moneys on fixed, current and recurring deposits and lends out money, with or without security. Its source of income is derived from the chit fund business by way of commission and default interest from chit fund subscribers, who fail to pay the subscription within the stipulated time. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contributors to the common fund should be entitled to participate in the surplus and that all the participators in the surplus should be contributors to the common fund, in the view that there was no complete identity between the contributors and participators. Accordingly, the claim to exemption from tax was rejected for all the assessment years 1952-53 to 1959-60. The Appellate Assistant Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this decision of the Supreme Court there is any scope for the claim to exemption from tax. Mr. Srinivasan, learned counsel for the assessee, urges that, despite the decision of the Supreme Court, to the extent to which there is identity between the contributors and the participators in surplus, that part of the income should stand exempted. We have carefully gone through the decision and are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income that is earned becomes that of the incorporated company which according to the law distributes portions of that income by way of dividends to its shareholders, whether they contributed to the common fund or not. Looked at from that point of view, the entire structure of the case alters and it should necessarily follow that even though there may be certain persons who both contributed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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