2004 (4) TMI 43 - HC - Income Tax

Prize money of the Sikkim lottery – taxability under the Income-tax Act, 1961. - held that acquiescence to an illegal tax for a long time is not a ground for denying the party the relief that he is entitled to. In the instant case, therefore, it may be held that merely because the petitioner offered the prize money won in the lottery of the Sikkim Government, to tax under the Income-tax Act, 1961, that shall not take away her right in contending that the said prize money was not chargeable and assessable to tax under the Income-tax Act in the revisional jurisdiction. The said prize money was chargeable to Income-tax under the Sikkim Tax Manual that held the field at the relevant time and the Income-tax from the prize money as per the then existing Sikkim Income-tax Manual was deducted. – writ petition is allowed - assessment order and revisional order are quashed and set aside