TMI Blog2009 (10) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... grieved by the order passed by the Assistant Commissioner, Bangalore Bench, Ban- galore, in I. T. A. No. 1082/Bang/2005. 2. The assessee is a wholesale distributor of lottery tickets and was purchasing lottery tickets from Mysore Sales International Limited (MSIL). Lottery Division, Government of Karnataka organisation. The assessee had made total sales of lottery tickets to the tune of Rs. 1,02,26,070 and no profit was declared by the assessee from the said sales of Rs. 1,02,26,070. The Assessing Officer found that the assessee had purchased lottery tickets from the Government organisation by making payments in cash exceeding Rs.20,000 amounting to Rs. 45,93,810. The explanation of the assessee was called for and the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate Tribunal and the Appellate Tribunal by order dated August 3, 2006, confirmed the order passed by the appellate authority holding that Mysore Sales International Ltd. (Lottery Division) is a Karna- taka Government company. The sale of lottery tickets has been vouched by the vouchers given by the assessee and the assessee has to make payment immediately as it is only on receipt of payment, lottery tickets will be given to the distributors. It was also explained that payment that has to be made depends upon the number of lottery tickets purchased and MSIL does not accept bearer cheques and wherefore, applying the provisions of rule 6DD(b) of the Rules, the Tribunal confirmed the order passed by the appel- late authority and being aggri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record. Having regard to the contentions urged, the substantial question of law raised on February 21, 2009, is modified as follows : "Whether the finding of the Tribunal confirming the order of the appellate authority that the payment made to MSIL in cash is exempted under rule 6DD(b) of the Income-tax Rules, 1962, is per- verse and arbitrary and calls for interference in this appeal ?" 7. We answer the substantial question of law in favour of the Revenue and against the assessee for the following reasons : 8. The fact that payment in excess of Rs. 20,000 on various occasions have been made by the assessee in cash to the tune of Rs. 45,93,810 is not in dis- pute. However, the assessee claims exemption under rule 6DD(b) of the Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X
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