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2003 (9) TMI 10 - HC - Income TaxAssessee winning an amount of Rs. 25,000 from Kerala State Lottery - He had filed a return of income showing the total income as Rs. 22,500 after deducting the agent's commission and seller's bonus, at the rate of 5 per cent. each - "Whether, the charging of tax at a flat rate of 40 per cent, on Rs. 22,500 under section 115BB, is valid and in accordance with law and making adjustment under section 143(1)(a) is highly debatable?" - As already noted, in the original intimation the Assessing Officer had applied the provisions of section 115BB of the Act and applied a flat rate of 40 per cent, on the entire lottery income. The effect of the finding of the Tribunal that the legal issue is a debatable one and the assessment cannot be rectified is that the original intimation which is against the assessee stands. We also find that for arriving at the conclusion that the legal issue is a debatable one the Tribunal has not cared to consider the provisions of section 115BB and the CBDT Circular No. 461, dated July 9,1986 - Tribunal committed a serious error in holding that the assessee is entitled to succeed - we decline to answer the question
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