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2004 (9) TMI 72 - HC - Income TaxIncome from lottery - Deduction under section 80TT on the winnings of lottery- Assessing Officer had allowed the deduction on the net amount of lottery after adjusting Rs. two lakhs paid by the Sikkim Government by way of commission to commission agents or other expenses before the amount was paid to the assessee - "1. Whether, Tribunal was justified in holding that income from Sikkim State lottery is taxable under the Income-tax Act, 1961? 2. Whether, Tribunal was justified in holding that deduction under section 80TT is applicable on the net winning amount received by the assessee and not on the gross amount of the winning prize?" – There is no doubt or dispute that, had Sikkim not become a State of India, the winning was liable to be taxed in the hands of the assessee notwithstanding it was liable to be taxed in Sikkim also - Tribunal was right in holding that income from winnings of lotteries declared by the State of Sikkim was liable to be included in the hands of the assessee as resident of India within the State of Rajasthan where the Income-tax Act, 1961, was in force notwithstanding that it had accrued or arisen to him at a place where the Act of 1961 was not in force even in respect of income accruing to him without taxable territory - Both questions are answered in affirmative
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