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ORDER Mrs. Chitra Venkataraman, J. - The assessee is on appeal as against the order of the Income Tax Appellate Tribunal, dated 26.04.2006, relating to the assessment year 1996-97. 2. The assessee is an individual, who was a subscriber to a Chit scheme. During the assessment year 1996-97, the assessee received chit dividend of Rs.90,140/-. Placing reliance on the decision of the Punjab & Haryana High Court in the case of Soda Silicate & Chemical Works v. CIT [1989] 179 ITR 588/46 Taxman 33, the assessee claimed exemption on the principle of mutuality. The assessee's case was taken up for scrutiny and after hearing the assessee, the Assessing Officer held that the income derived in the form of chit dividend was taxable under Section 28(iii) of the Income Tax Act. 3. Aggrieved by the order of assessment, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who dismissed the assessee's appeal by following the decision of this Court in the case of CIT v. Dr. Chinna Oomen [1984] 150 ITR 583. 4. Aggrieved by this, the assessee went on appeal before the Income Tax Appellate Tribunal by contending that the surplus received on the close of the chit was not income exigible to tax on the principles of mutuality. Thus, the assessee once again placed reliance on the decision of the Punjab & Haryana High Court in Soda Silicate Chemical Works case (supra), referred to above. In considering the said claim, the Income Tax Appellate Tribunal applied the decision of this Court in the case of in the case of Dr. Chinna Oomen (supra) and rejected the assessee's contention. Aggrieved by this, the assessee has preferred the present Tax Case (Appeal). 5. Learned counsel appearing for the assessee submitted that going by the principle of mutuality, as pointed out in the Supreme Court decision in the case of CIT v. Bankipur Club Ltd. [1997] 226 ITR 97/92 Taxman 278, the Income Tax Appellate Tribunal committed a serious error in holding that the surplus received as by way of dividend was taxable under the provisions of the Income Tax Act. He submitted that the decision of this Court has no relevance to the case on hand, since, in the said case, the…

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