Itta/324/2006 Of M/S Shriram Chits Private Limited v. The Deputy Commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD THURSDAY, THE SCOND DAY OF NOVEMBERTWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHYANDTHE HON'BLE SRI JUSTICE N.TUKARA{I'JIT.T.A262 ol7 324 ot006 148 of20083{)9 of 2O19 and 319 of 2019 l.T.T.A.No.262 of 2fi)7 lncome Tax Tribunal Appeal Under Section 260-4 of the lncome Tax Act, 1961arbing out of the order of the lncome-Tax Appetlate Tribunal. Hyderabad Bench ' B 'arbing out of the order of the lncome-Tax Appetlate Tribunal. Hyderabad Bench ' B 'Hyderabad, in l.T.A.No.58/Hydlm$, Assessment Year 1996-p7, dated 29-12-2006,preferred against the Order of the Commissioner of lncome Tax (Appeals)-lV,Hyderabad, Appeal No.391 /JCSR-4/ClT(A)-lV/200 1 -O2, dated :2 6- 1 1 -2OO2, preferredHyderabad, Appeal No.391 /JCSR-4/ClT(A)-lV/200 1 -O2, dated :2 6- 1 1 -2OO2, preferredagainst the Order of the Joint Commissioner of lncome Tax (Assts.), Special Range -4, Hyderabad PAN/GlR No.S-122dated 31-03-99.4, Hyderabad PAN/GlR No.S-122dated 31-03-99. Between: Striram Chits Private Limited, lll Floor, Anand Estates,Himayathnagar,Hyderabad, represented by its Drector, Mr. R. Druvasan,S/o SriA.Ramacfiandra MftJu, aged 46 years, resident of Hyderabad. ...APPELLANT AND Joint Commissioner of lncorne Tax, [Assts], Special Range-4, Hyderabad. ...RESPONDENT Counsel for the Apfllant: SRI K. MAHESWARA RAOCounsel for the Respondent: SRI J.V. PRASAD {SC FOR lNCOlt E TAX) l.T.T.A. No.324 of 2006 lncome Tax Tribunal Appeal Under Section 260-4 of the lncome Tax Act, 1961arising out of the order of the lncome-Tax Appellate Tribunal, H /derabad Bench [' ]B [']Hyderabad, in l.T.A.Nos.19'16 to 1919/Hyd/'1996, Assessment ['/ear ]1991-92, dated31-01-2002, preferred against lhe Order of the Commissioner of lncome Tax(Appeals), Hyderabad, Appeal No.lTl16812324195-96 and lR/539 DC(A.Vy96-97,dated:16-08-96, preferred against the Order of the Deputy Commissioner of lncomeTax , Hyderabad PAN/GIR No.S-7 dated 08-02-1995- Between: M/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 500029, Represented by its Executive Direclor, Mr. R.Duruvasan. ...APPELLANT AND The Deputy Commissioner of lncome Tax, [Assts] Special, R€rnge-s, Hyderabad. ...RESPONDENT Counsel for the Appellant: SRI K. IvIAHESWARA RAOCounsel for the Respondent: SRI J.V. PRASAD [(SC ]FOR lNCr)ME TA"\)l.T.T.A-No.148 of 2008 lncome Tax Tribunal Appeal Under Section 260-A of the lncome Tax Act, [1961]arising out of the order of the lncome.Tax Appellate Tribunal, Hyderabad Bench [' ]B [']Hyderabad, in l.T.A.No.1161tHl2OO4, Assessment Year 2001-2002, dated 1-1 [1-]2007, preferred against the Order of the Commissioner of lncome Tax (Appeals) lV,Hyderabad, Appeal No.89/AC-3(1yClT(A)-lV/2004{5, dated:27-09-2003, [preferred]against the Order of the Commissioner of lncome Tax Department , [Hyderabad]PAN/GIR No. I 5-122 dated 31-03-2004. Between: M/s. Shriram Chits Private Limited, 3-5-909, Himayathnager, [Hyderabad ]- [5O0]029, Represeflted by its Executive Director, Mr. R.Duruvasan. ...APPELLANT AND Deputy Commissioner of lrrcorne Tax, Circle 3(1), Room No. 61 1, 6th Floor,Aayakar Bhavan, Basheerbagh, Hyderabad-5OOO04. ...RESPONDENT I Counsel for the Appellant: SRI K. MAHESWARA RAO Counsel for the Respondent: SRI J.V. PRASAD (SC FOR INCOME TAX)l.T.T.A"No.309 of 2019 Between: M/s. Shriram Chits Private Limited, 3-5-909, Himayathnager, [Hyderabad ]- [5O0]029, Represeflted by its Executive Director, Mr. R.Duruvasan. ...APPELLANT AND Deputy Commissioner of lrrcorne Tax, Circle 3(1), Room No. 61 1, 6th Floor,Aayakar Bhavan, Basheerbagh, Hyderabad-5OOO04. ...RESPONDENT I Counsel for the Appellant: SRI K. MAHESWARA RAO Counsel for the Respondent: SRI J.V. PRASAD (SC FOR INCOME TAX)l.T.T.A"No.309 of 2019 lncome Tax Tribunal Appeal Under Sec{ion 26O-4 of the lncome Tax Act, 1961arising out of the order of the lncome-T3x Appeihte Tribunal, Hyderabad Bench ' B 'Hyderabad, in l.T.A.No.1992lHYDl2O17, Assessment Yat 2013-2014, dated 08-O6-arising out of the order of the lncome-T3x Appeihte Tribunal, Hyderabad Bench ' B 'Hyderabad, in l.T.A.No.1992lHYDl2O17, Assessment Yat 2013-2014, dated 08-O6-2018, prefened against the Order of the Commissioner of lncorne Tax (Appeals) 3,Hyderabad, lTA.No.0554lDClT/Cir-3(1/C|T(AY31201G17, dated:1'l-0S2017,prefered against the Order of tfie Deputy Commissioner of lncome Tax Ckcle-3(1),Hyderabad PAN/GIR No. dated 31-03-2016.Hyderabad, lTA.No.0554lDClT/Cir-3(1/C|T(AY31201G17, dated:1'l-0S2017,prefered against the Order of tfie Deputy Commissioner of lncome Tax Ckcle-3(1),Hyderabad PAN/GIR No. dated 31-03-2016. Betwem: [rl/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 5OO029, Represented by its Drec{or, K. Srinivas. ...APPELLANT AND Oeputy Commissioner of lncome Tax, Cirde 3(1), Hyderabad. ...RESPONDENT Counsel for the Appel{ant: SRI K. MAHESWARA RAO Counsel for the Respondent: SRI J.V. PRASAD (SC FOR INCOME TAX) T.T.A.No.319 of 2019 lncome Tax Tribunal Appeal Under Section 260-A of the ln<nme [Tax ]Act, [1961]arising out ol the order of the [lncome-Tax ][Appellate Tribunal, ][Hyderabad ][Bench ][' ] [']Hyderabad, in T.A.No.1993 [tHYDt2O17, ][Assessment Year ][2014-2015, dated ] 2018, [preferred ]against the Order of [the Commissioner ][of ][lnconre ][Tax (Appeals) ][3,]Hyderabad, lTA.No.0554/DCIT/C|r-3(1 /ClT(A)-312016-17 , dated:1 1-09-2017,preferred against the Order of the Deputy Commissioner of lncome [Tax ][Circle-3(1),]Hyderabad PAN/GI R [No.AAFCS491 ][6D ][dated ][31 ][-03-201 ][6.] Between: M/s, Shriram Chits Private Limited, [3-5-909, Himayathnagar, Hyderabad ]- [5OO]029, Represented by [its ]Director, [K. ][Srinivas.] ...APPELLANT AND Deputy Commissioner of [lncome ][Tax, ][Circle ][3(1), ][Hyderabad] ...RESPONDENT Counsel for the Appellant: [K. ] Counsel for the Respondent: [J.V. ] [(SC FOR INCOME TAX)]The Court delivered the following: tI THE HON'BLE SRI JUSTICE P.SAM KOSIryANDTHE HON'BLE SRI JUSTICE N. TUI(ARAMJI I.T.T.A.Nos.262 OF 2OO7, 324 0F 2006, L4A OF 2008,3O9 OF 2O19 and 319 OF 2019. COMMON JUDGMENT: (per Hon'ble Sri Justice P.SA KOSII, These appeals are filed under Section 260-A of the IncomeTax Act, 1961, in respect of the same Assessee for theAssessment Years I 992- 1 993, 1996-1997, 2OO I -2OO2, 20 [| ]3 - 14,and 20 | 4 -2O 75, respectfully. 2. The questions of law raised to be considered in thepresent appeals are as follows:- 2. " 1. Wlether on the facts and in the ciranmstancesof the case, the Income Tox Appellate Tibunal uascorrect in laut in rejecting the Appellnnt's claim forexemption of the diuid.end income on tlre pincipal oJmutualitg on the ground that the Appellant i,s abusiness concem.of the case, the Income Tox Appellate Tibunal uascorrect in laut in rejecting the Appellnnt's claim forexemption of the diuid.end income on tlre pincipal oJmutualitg on the ground that the Appellant i,s abusiness concem. 2. Whether on the fac* and in tLe circum.stancesof the case, the Income Tox Appellate Tribunal utascorrect in law in ignoring the fort tlwt uthen theAppellaru subscribed to a chit, it does so in itscharacter as a subscriber." 3. Today when the matter is taken up for hearing, the 2. " 1. Wlether on the facts and in the ciranmstancesof the case, the Income Tox Appellate Tibunal uascorrect in laut in rejecting the Appellnnt's claim forexemption of the diuid.end income on tlre pincipal oJmutualitg on the ground that the Appellant i,s abusiness concem.of the case, the Income Tox Appellate Tibunal uascorrect in laut in rejecting the Appellnnt's claim forexemption of the diuid.end income on tlre pincipal oJmutualitg on the ground that the Appellant i,s abusiness concem. 2. Whether on the fac* and in tLe circum.stancesof the case, the Income Tox Appellate Tribunal utascorrect in law in ignoring the fort tlwt uthen theAppellaru subscribed to a chit, it does so in itscharacter as a subscriber." 3. Today when the matter is taken up for hearing, the learned counsel appearing for the parties produced a decision ofthe Division Bench of this Court in respect of the very sameAssessee in I.T.T.A.No.296 of 20O6 and batch, decided on13.11.2022. The Division Bench, relying upon the decision , ,I I o P.CI(.J & ATTR,J I.T.T.A.No.262 OF 2OO7 a.nd Batch rendered in Cornmissioner of Income-Trl,x Vs. KovurTextllesl, had answercd the qucstion of law against theappellant - Assessee and in favour of the Revenue Dr:partment. 4. Given the fact that the Division Bench of this Court hasalready considered and decided an identical issue, vrc are of theconsidered opinion that thc present appeals also dr:sr:rve to berejected in the light of the aforesaid decision o[ th<: DivisionBench of this Court in I.T.T.A.No. 296 of 2OO6 and batch,decided on 3O. 1 1.2022. 5. Accordingly, thesc appeals are rejected. There shall be noorder as to costs. Consequently, miscellancous applications if any, shall stand closed. 7b) rlLrTP4) Df Sd/. K. SRINIVASA .JOINT REGISTRAR //TRUE COPY// t "-"--' \ SECTION OFFICER To, 1. The lncome-Tax [Appellate Td6unal, ][Hyderabad ][Bench ][' B ][' ][Hyderabad] 2. The Commissioner [of ][lncome ][Tax (Appeals)-lV, ][Hyderaberd] 3. The Commissioner [of ][lncome ][Tax (Appeals) ][3, ][Hyderabad] 4. The Commissioner [of ][lncome ][Tax (Appeals), ][Hyderabad] 5. The Joint Commissioner [of ][lncome ][Tax ][(Assts'), Special ][flange ][- ][4']HyderabadHyderabad lryr^?1-- 6. The Deputy Commissioner [of ][{ncome ][Tax ], [Hyderabad] 7. The Commissioner of [lncome Tax ][Department ], [Hyderabad] 8. The Depuly Commissioner of [lncome Tax Circle-3(1), Hyderabad]L One CC to SRI K. [RAO, ][Advocate ] L One CC to SRI K. [RAO, ][Advocate ] 10.One CC to SRI J.V. PRASAD, FOR [TAX{OPUCI] 1 1. Two CD Copies kam i HIGH COURT DATED:0211112023 4,{S,ESTATA.(l9qoo0 [4 ][0t[ ][2[?3]..idl=",...c1', -)., l I GOMMON JUDGMENT !TTA.Nos.262 of 2007,324 of 2006, 148 of 2008309 of 2019 and 319 of 2019 THESE APPEALS, ARE REJECTED \>\l[wz]