Allowing the appeal the Tribunal held that; If a subscriber incurs loss in subscribing to chit fund to raise funds to use them in his business or for business purpose, such a loss is an allowable deduction. Referred,CBDT instruction No.1175 under order F. No. 169/21/78-IT (80) dated May16, 1978. (AY. 2004-05)
Kamal Raheja v. ITO (2017) 162 ITD 55 / 183 TTJ 538 / 145 DTR 225 (SMC)(Luck)(Trib.)
S. 28(i) : Business loss-Chit fund business-If a subscriber incurs loss in subscribing to chit fund to raise funds to use them in his business or for business purpose, such a loss is an allowable deduction.