DCIT Central Circle-2 Coimbatore. Vs. M/s. Maruti Enterprises

Parties Involved

Facts Summary

The assessee, a partnership firm, earned prize money on unsold lottery tickets which was credited to Profit & Loss Account and offered as business income. The Assessing Officer (AO) concluded that such winnings would be separately chargeable to tax at the rate of 30% under Section 115BB. The Commissioner of Income Tax (Appeals) (CIT(A)) directed the AO to consider the prize money as business income and allow expenditure of unsold lottery tickets. The revenue appealed against this decision. The Tribunal dismissed the appeal, concurring with the CIT(A) that the prize money from unsold lottery tickets was business income.…

Legal Issues

• 1. To determine the head of income under which prize winning from unsold lottery tickets would be assessable to tax.

Judgment Outcome

Decided in favour of Revenue.

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