Shriram Chits Tamilnadu Pvt v. The Assistant Commissioner

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 17.06.2025 CORAM :

THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE AND THE HON'BLE MR.JUSTICE SUNDER MOHAN T.C.A. Nos.530 of 2014 and 231 of 2012 Shriram Chits Tamilnadu Pvt. Ltd., 149, Greams Road, Chennai-600 006.

PAN AABCS0167N .. Appellant in both appeals Vs.

The Assistant Commissioner of Income Tax, Company Circle VI (2), Chennai.

.. Respondent in both appeals Prayer in TCA No.530 of 2014: Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of Income Tax Appellate Tribunal, "D" Bench, Chennai, dated 27.11.2013 passed in I.T.A No.1688/Mds/2012. Prayer in TCA No.231 of 2012: Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of Income Tax Appellate Tribunal, "D" Bench, Chennai, dated 30.03.2012 passed in I.T.A No.1182/Mds/2011.

For Appellant:

in both appeals Mr.R.Sivaraman For Respondent:

in both appeals Mr.J.Narayanasamy COMMON JUDGMENT (Delivered by the Hon'ble Chief Justice) The following two questions of law were framed on 28th August, 2012 and 28th October, 2014, respectively:

"T.C.A.No.530 of 2014:

1. Whether in law, the dividends received by the appellant as a chit subscriber, is exempt from taxation on grounds of mutuality between all the chit subscribers including the appellant?

2. Whether on the facts and circumstance of the case, the Tribunal was correct in confirming the disallowance to the extent of Rs.7,47,266/- by applying Rule 8D read with Section 14A of the Act?"

"T.C.A.No.231 of 2012:

1. Whether in law, the dividends received by the appellant as a chit subscriber, is exempt from taxation on grounds of mutuality between all the chit subscribers including the appellant?

2) Whether on the facts and circumstances of the case, the Tribunal was correct in confirming the disallowance to the extent of Rs.5,13,800/- by applying Rule 8D read with Section 14A of the Act?"

2. Shri Sivaraman, in fairness, states that the first question of law has been answered against the assessee in Shriram Chits Tamilnadu (P) Ltd., No.149, Greams Road, Mount Road, Chennai-6 v. The ACIT, Income Tax Officer, Company Circle-VI(2), No.121, Nungambakkam High Road, Chennai-600 0341.

3. As regards the second question of law, Shri Sivaraman states he does not wish to press the same. Shri Sivaraman states he will raise the issue in another proceedings, if need arises.

4. Appeals stand disposed of. There shall be no order as to costs. (K.R.SHRIRAM, CJ.) (SUNDER MOHAN, J.) 17.06.2025 Index :

Yes/No :

Yes/No bbr 1 T.C.A.No.233 of 2011, decided on 28.11.2018

To:

1. The Assistant Registrar Income Tax Appellate Tribunal "D" Bench, Chennai.

2. The Commissioner of Income Tax (A) V, Chennai.

3. The Assistant Commissioner of Income Tax, Company Circle VI(2), Chennai.

THE HON'BLE CHIEF JUSTICE AND SUNDER MOHAN,J.

bbr 17.06.2025