M/S SHRIRAM CHITS PRIVATE LIMITED vs. THE JOINT COMMISSIONER OF INCOME TAX (OSD)

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAO TUESDAY ,THE SEVENTH DAY OF NOVEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE N.TUKARAMJI 311 of 2012 455 ot 2014 134 135 136 412 oI 2015 564 of l.T.T.A. Nos. 41 2011 and 5 ot 2022 I.T.T.A. NO. 41 0F 2012 (lncome Tax Tribunal Appcal Llnder. Sccrion 260 A of the Incotne Tax Act 1961 against the order ol-the Income Tax Appcllatc l ribttnal. Hrdcrabad Bench' B '. I{yderabad in ITA No. 155/W2007 for assessmenr Ycar l0()l-1001 darcd j0-04-1010 prefened against the order of the commissioner of Inconre Tax ( r\ppeals ) - IV. Hlderabad in Appeal No. 0290/DC-3(1) / C.I.T (A) - lY I 200(t-01 datcd -.10-11-200(r prelcrrcd against the order of rhe Deputy commissioner of Incomc l'ax . ( irclc 1 ( I ). Il),derabad dated l6-02-2005 in PAN/GIR No. AAFCS49I6D/ S- 122 Between: M/s. Shriram chits Private Limited Rep by its Executive Director Sri K.Srinivas 3-5- 909, Himayatnagar, Hyderabad 500 029 .-'APPELLANT AND Deputy Commissioner Of lncome Tax, Circle 3(1) Room No. 61'l , -6t-Floor' Aayakar ef,5vah, Basheerbagh, Hyderabad 500 004 ...RESPONDENT Counsel for the Appellant : SRI SIVARAMAN/ SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept.,

|.T.T.A. NO. 311 0F 2012 (lnconre l-ar IlihLrnlr] .\ppeal [.nder Scction 260 A olth: Income l'ar Act l96l agaittst thc ordcr ol' the Inc.r rre I'ar Appcllatc I riburral- H'derabad Bcnch ' B '. Hr dcrabad in ITA No. l54llll)007 lirr as:cssnrenr Year 100,1-2004 darcd 30-04.2()10 prelerrcd againsr the Order ol'thc Conrnrissioncr of lncorne Iax ( Appcals ) IV. HlrJerabad in Appcal No. 0402 /DC--3(t) / c.r. r (..\) r\ ' 1006-07 dated _'i0- t I -2006 prel'erred against the Ordcr of Inconrc Tax . Circlc 3 (l). [ll,derabad ,lated j0-12-200,5 the Deputy ('orunrissirrrrcr ol in PANiGIR No .\.\l'('Sl()l(,1)'SII- l5 Between: M/s. Shriram Chits Private Limited Rep 909, Himayatnagar, Hyderabad 500 029 AND peputy Commissioner Of lncomeTax, Circle 3(i)Room No. 6l l, 6rh Floor, Aayakar Bhavan, Basheerbagh. Hyderabad-SOO 004 ...RESPONDEN1 by its Executive Director Sri K.Srinivas 3-5- ...APPELLANT Counsel for the Appellant : SRI STVARAMAN/ SRt VEDULA SRINIVAS Counsel for the Respondent: SRt J.V. PRASAD, SENIOR SC FOR l.T. Dept., |.T.T.A. NO. 455 0F 2014 (lnconte Tur Iril.rLLnrrl \ppcal I ntlcr Section 260 A of the Income Tax Act l96l against the ordcr rrl lltc Inri,rrre I;rr .\ppcllatc' Irihunal. lll,derabad Bench 'A ,. Hyderahad in ITA No. ll4l Ill0 ll li, .s\essn)cnr Ycar 2010 -2011 dated 6-12-2013 prclcrretl against thc ()rtlcr ol'tltr'( rrlrrllti.sittrrcr ot lnconrc 'l'ar ( Appeals ) IV. Hideratrad in Appcal No. l0li l)( 1(1, ( ll (.\) I\- ll -l-i datcd 10-05-2013 preferred aqar.sr r6c Ordelolthc [)cDutr ( trnrnri':ioncr ol lnconrc [ax . Cir-clc -3(l). Ilvclerabad rlarcl 07- 12-2011 in l'A\ (illi \o \ \l( S191(,1),SII-tr.

Between: Mis. shriram chits Private Limited Rep. by its Executive Director sri K.Srinivas 3-5- 909, Himayatnagar, Hyderabad 500 029 ..APPELLANT AND Deputy Commissioner Of lncorne Tax, Circle 3(1) Room No. 611' -6t-Floor Aayjlkar Bhhvan, Basheerbagh, Hyderabad-SO0 004 ...RESPONDENT counsel for the Appellant : sRl SIVARAMAN / SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept', |.T.T.A. NO. 134 0F 2015 (lncomc 'fax 'l ribunal .\ppcal t rrrlcr Section 260 A of the Income 'I'ax Act l9(rl against the ordcr ol'the lnconrc lar ,\ppcllltc I'ribunal. Hyderabad Bench'B', I{yderabad irr ITA No. 541 llll2}0g firr a:sessnrenl Ycar 2006 -2007 dated 30-04-2010 preferrcd against thc Ordcr ol the ('orllnrissioncr ()l lncome-l'ax ( Appeals ) - IV, Hyderabad irr Appeal No. 0159/ nddl. CI I-lr(lf (^) datcd 13-03-2009 prefened against the Ordcr ol the Additional Clonrntissiorrcr of' Inctrnre Iax l{ange - 3 (l). Hyderabad dated 29-0()- 2008 in PAN/(ilR No. AAI ( Sl9l6l) sll-15 . Between: M/s. Shriram chits Pnvate Limited Rep by its Executive Director sri R. Duruvasan 3-5-909, Himayatnagar. Hyderabad 500 029 ...APPELLANT AND Additional Commissioner Of lncome Tax. Range 3, 7th Floor, IT.Towers, A.C' Guards, Hyderabad - 500 004 .-.RESPONDENT Counsel for the Appellant: SRI SIVARAMAN / SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept',

|.T.T.A. NO. 135 0F 2015 (lnconrc lar lrihunal Appeal Under Section 260- A o1'thc lrcorrrc IlLr ,\ct l96l asainst the ordcr ol lhe Inconre 'fax Appellate Tribunal. I{yderabad I]e rch B '. I Ir tlerlbacl irr I'l A No.6-10'Il,l(X)S lor assessmcnt Year 2004 -2005 datcd I )-01-.1010 prel-errcd against thc Order ol'thc Conrnrissioner of Income 1ax ( Appeals t I\'. tlldcrabad in r\ppcal No 0'19e' I)( --l ( l) / (llT (A) -lV / 2006-07 da thc Ordcr ol'tlrc I)cpLrtr ('ommissioner of Income Tax l9-ll-1006 in I',\N Cilll No. AAFCS49l6D/ SH-15 . Between: ted ti )2-02 Circ lc -l tl) prc lcrr cd against llr dcrahirtl datcd M/s. Shriram Chrts Private Limited Rep. by its Executive Director Srr K. Srinivas 3 5-909, Himayatnagar. Hyderabad 500 029 ...APPELLANT AND Deputy Commissioner of lncome Tax, Circle 3 (1), Room No. 61', 6't' Floor, Aayakar Bhavan, Basheerbagh, Hyderabad ...RESPONDEhIT Counsel for the Appellant : SRI SIVARAMAN/ SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept., |.T.T.A. NO. 136 0F 2015 (Lrctrnrc Irrr lliburral Appeal lJnder Section 260 A of thc lrrtone llr \ct l9(rl against th,i oldcr ol lltc Inconrc'fax Appellate Tribunal, I{ydcrabad l}eleh l}'. llrtlclrrhad irt l.l'A No 917 II l()o8 ti)r'assessment Year 2005 -2006 datcd l(r-(r-+-l0ll) P|ctcrl'crl ag inst thc ()rder ol lhe Corrrurissioner of lncome Tax ( Appeals ) I\.Ilrtlertbarl ltl .\ppcal \(r. ol(t') \diil asainst thc ()rJer (,l tllc ( l l-l/ CIT (A) -lV / 2007 -08 datc(l -(,-l)r-l(i(rli lrrclcrrcLl ,\tklitional Commissioner ol' lnctrrnc Irrr. I{rrnl, ] ( I I Ilrdcrahad rLrtcrl l(, ll-l()07 in PAN/CIRNo. AAI;CS49l(rl),' SII li Between:

IVI/S. Shriram Chits Private Limited Rep. by its Executive Director Sri R. Duruvasan 3-5-909, Himayatnagar, Hyderabad 5OO O2O ...APPELLANT AND Additional Commissioner Of lncome Tax, Range 3, 7th Floor, lT Towers, A.C. Guards, Hyderabad - 500 004 ...RESPONOENT Counsel for the Appellant : SRI SIVARAMAN/ SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept., |.T.T.A. NO. 412 0F 2015 (lncoure Tax l-ribunal Appeat Under Section 260 A olthe [ncotne lar.\ct 196] against the order of tlte lncome Tax Appeltate Tribunal,.I{yderabad Uench ' A '. [{l tlclabad in IIANo_651 /HYI) /2009 for assessment Y ear 2009 -2010 datcd 5-.1-10li prelerrccl asainsr rhc Order of the Commissioner of Income Tax ( Appeals ) [V. Hl dcrahad in .{ppeal No. 210 / JCll' 3 (1) / CIT (A) -IV / 20ll-12 dated i0- 0l-2012 prelerreil against the Order o1'the Joint Commissioner of Income l'ax . (OSD) . Circle I (l)' llltlerabad dated2i-l i-2011 in PAN/GIRNo. AAFCS49t6D/ SIl-15 Between: lr4/s. Shriram Chits Private Limited Rep. 5-909, Himayatnagar, Hyderabad 500 02 AND by its Executive Director Sri K. Srinivas 3- 9 ...APPELLANT The Joint Commissioner of lncome Tax lncome Tax Circle - 3 (1) , lT Towers, 7 Hyderabad - 500 004 ..RESPONDENT Counsel for the Appellant: SRI SIVARAMAN / SRI VEDULA SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T. Dept', |_T.T.A. NO. 564 0F 2011 (hrcome Ta\ 'ltibunal Appcal Under Section 260 A of thc ltlconte .far '\c1 196] asainst thc order oI thc Income Tax Appellate Tribunal. Hyderabad Ucnch ' I] ', Hr ilerll'ad irr .'(OSD). O/o. DePuty Commrssioner of Floor, "B" Block. Masab Iank.

I'l'A No. 490 I Hl 2010 l-or assessmeut Year 2007 -2008 datccl l-0:i-201 I prcferred against thc Order of the Comrnissioner of lttcottlc Iax ( '\ppcals t tV- [ [yderabad in Appeal No. 156/ Addl. CII -3l CIT (A) - IV / 1009-10 datcd -l(r 0l-1010 prefcrred against the Order of the Additionat Clommissioncr of llrcorlrc l ax I{arlsc 3 , H;rlerabad dated 27-10-2009 in PAN/GIR No. Az\FCS'l9l6Di SH-15 . Between: M/s. Shriram Chits Private Limited Rep by its Executive Director Sri R. Duruvasan 3-5-909, Himayatnagar, Hyderabad 500 029 -..APPELLANT AND Additional Commissioner Of lncome Tax, Range 3, 7th Floor, lT Towers, A.C. Guards, Hyderabad - 500 004 ...RESPONDENT Counsel for the Appellant : SRI SIVARAMAN/ SRI VEDUAL SRINIVAS Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l.T- Dept., |.T.T.A. NO. 05 0F 2022 (lncome Tax Tribunal Appeal Undcr Section ]60 .'\ of Lh lncotrte'l'ar Act l96l against the order of the Income'l'ax Appellatc I'ribunal. I Il tlcrlrhld Ij.r]clr '.-\ '. Hyderabad in ITA No. 718 IHYD/2019 for assessmeut Ycal f0l(r -1017 dxted l 7 o8-102 t preferred against the Order of the Commissionel of [ncoDre lar ( .\ppclls t .1 I [r rl,-'rahad in I'tA No. 10220/DCIT -3 (1)-CIT(A) -3 l2Ol9 -19 dated l0-0.r-10 l9 prctcr t'ctl rLgrLinst the Order of the Deputy Commissioner oi [ncomc Tax (ir-clc ] (lt. ll]tlcrlhatl datcd l4-12-2018 in PAN/GIRNo. AAFCS49l6D . Between: M/s Shriram Chits ( lndia ) Private Limited . 3-6-478, lll Floor Anand Eltates' Opp: lndian Bank, Liberty Road, Hyderabad - 500 029 , Represented by (s.Director [Vlr K.R.C. Sekhar, S/o. K.V. Ramachandran .'APPELLANT AND Hyderabad ..RESPONDENT The Deputy Commissioner of lncome Tax , Circle - 3 (.1)

Counsel for the Appellant : SRI SIVARAMAN/ FOR SMT' VEDULA CHITRALEKHA Counsel for the Respondent: SRI J.V. PRASAD, SENIOR SC FOR l'T' Dept'' The Court made the following COMMON ORDER

THE HON'I}LE SRI JUSTICE P.SAM I(OSHY AND THT] HON'I}LE SRI JUSTICE N.TUKARAMJI I.T.T.A. No-s.4I,3ll of 2012.' 455 of 20 14,, 134, t35. t36, {12 of20l5,564of20ll and 5 of 2022 COMMON.ITJDGMENT: (per Hon'ble Sri Justice P.,lAIt KOSHY) Heard Mr.Sivararnan, leamed counsel for the appellant and Mr. J.V.Prasad, lcarncd Senior Standing Counsel firr the Department. Perused the rnaterial available on record. 2 These are appeals ri hich havc bcen filed by the assesee questioning \ the order passed b1' the Incorre Tax Appellate l'ribunal (for short 'ITAT'), so lal as lc,.jecting the appeilants claim for exemption of chit fund inconre on the prir.rciples of mutuality on ttre ground that the appcllant is zr busincss conceln. 3. lt has hccn infolrncd at tltc bar that the issue already has been decided bl, tlre Division Bench of'this very High Court itself in a batch ol appeals irr I.T.-t...\.Nos.l96 of 2006 and other connected appeals which wclc dccided on 30.1 1.2022. This High Court relying upon the earlier jtrdrrrrcnt ol tlris very uigh Court, in the casr: <tf Commissioner of Incorue 7ir.r r,-r. Koyur Te-vtilc.s/, whereby, it has been held by the \ '1ts8z1 r;e rra or ac

? 1 t Division Bench of this Court that the principle of mutuality cannot be extended lor the income earned by a Chit Fund Company' This judgment still holds good. 4. Given the fact that similar appeals had also been listed last week before this Court, where again in a bunch of appeals, this Court had allowed the appeals in favour of the Revenue and against the assessee, vide order dated 02. I I .2023 in ITTA.Nos.324 of 2006 and other batch matters. In view of the sarne, the instant appeals also stand decided in terms ol the order passed by this Court in the aforesaid matters i'e', in the case of Commissioner of Income Tox vs- Kovw Textiles and also the batch matters decided by this very bench i.e., on 02'll'2023 referred to in the preceding paragraph. Thus, these appeals are accordingly re.iected ',vith the question of law being decided in favour of the Revenue. 5. As a sequel, misccllancous applications pending if any, shall stand closed. No order as to costs. Sd/- B.S. CHIRANJ EVI, JOINT REGI AR //TRUE COPY// SECTION FICER 1. Thc Income Tax Appcllatc -I-ribunal, Hyderabad Bench' B ', llvdcrabatl 2. The Income'Iax Appellate -l'ribunal, HvderabadBench' A', Hydcra bad 3. The Commissioner o[ Incotnc Tax ( Appeals )- [V, Hyderabad 4. The Deput-v Commissioner of ltrcorne Tax , Circle - 3 (l), Hyderabad To,

A Thc Additional Commissioner of Income Tax , Range _ 3 , Hydera bad Thc Joint Commissioner of Income Tax , (OSD) , Circle _ -l (l ), Hyderabad. 7. The Additional Commissioner of Income Tax , Range 3 (l ), Hl dera harl 8. One CC to Sri Sivaraman, Advocate (OPUC) 9. One CC to Sri J.V. Prasad, Senior SC for l.T. Dept., (fpLtC) 10.One CC to Sri Vedula Srinivas, Advocate (OPUC) .1 '1. Two CD Copies A^.- kul

HIGH COURT PSKJ & NTRJ DATED:O7l11l2O23 COMMONJUDGMENT z (;" : ),^, i.{\\\: HE ST4 1 )"e. a 0 / lrc 2!Zl AL l.T.T.A. Nos. 41 311 of 2012 455 of 2014 134 135 136 412 ot 2015 564ot2011 and5 ol 2022 ALL THtr.A.PPEAL ARII RITJECTLL) WI I'HOUT COSTS \9 z )'