Shriram Chits Private Limited V. Joint Commissioner of Income Tax, [Assts], Special Range-4, Hyderabad and Deputy Commissioner of Income Tax, [Assts] Special, Range-5, Hyderabad and Deputy Commissioner of Income Tax, Circle 3(1), Hyderabad and Commissioner of Income Tax (Appeals)-IV, Hyderabad and Commissioner of Income Tax (Appeals) 3, Hyderabad and Commissioner of Income Tax Department, Hyderabad

ITTA/262/2007

AI Insights

The case involves multiple appeals by Shriram Chits Private Limited against various orders of the Income Tax authorities concerning different assessment years. The primary legal issue was whether the appellant was entitled to exemption of dividend income on the principle of mutuality. The Income Tax Appellate Tribunal had previously rejected this claim, leading to the appeals. The High Court of Telangana, referencing a similar case (I.T.T.A.No.296 of 2006 and batch), upheld the Tribunal's decision, affirming that the appellant, being a business concern, does not qualify for the exemption claimed under the principle of mutuality.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 797305 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2023
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income-Tax Vs. Kovur Textiles
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: J V PRASAD
• Assessee Lawyers: K RAO
• Keywords: Business concern; Exemption of dividend income; Income Tax; Subscriber to Chit
• Section: 260-A

Judgement Text

"[ 337e I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THURSDAY, THE SCOND DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARA{I'JI T.T.A 262 ol 7 324 ot 006 148 of2008 3{)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, 1961 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, preferred against the Order of the Joint Commissioner of lncome Tax (Assts.), Special Range - 4, Hyderabad PAN/GlR No.S-122dated 31-03-99. Between: Striram Chits Private Limited, lll Floor, Anand Estates, Hyderabad, represented by its Drector, Mr. R. Druvasan, Ramacfiandra MftJu, aged 46 years, resident of Hyderabad. Himayathna S/o Sri gar, A. ...APPELLANT AND Joint Commissioner of lncorne Tax, [Assts], Special Range-4, Hyderabad. ...RESPONDENT Counsel for the Apfllant: SRI K. MAHESWARA RAO Counsel 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, 1961 arising 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, dated 31-01-2002, 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 lncome Tax , Hyderabad PAN/GIR No.S-7 dated 08-02-1995- Between: M/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 500 029, 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 RAO Counsel 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.AAFCS4916D I 5-122 dated 31-03-2004. 1-..' 9 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, 1961 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.AAFCS4916D dated 31-03-2016. Betwem: [rl/s. Shriram Chits Private Limited, 3-5-909, Himayathnagar, Hyderabad - 5OO 029, 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 l wz S,E ,{ "