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2012 (8) TMI 192 - DELHI HIGH COURTTreatment of Prize Winning Tickets (PWT) in the books of assessee - AO stated that liability was an artificial creation as it was without any monetary transaction - Held that:- The assessee is only a sole selling agent and the ultimate liability is that of the State Government - the actual sale of lottery tickets and lottery prize distribution is done by sub-agents who are responsible for distribution of profits. These sub-agents credit the assessee with amounts of PWT payable & the assessee passes similar entries in respect of such PWT amounts payable to its stockist. Eventually the stockist, makes a similar entry to square up accounts with the Government in the State Lotteries Department and as that transactions take place on a day-to-day basis and it is on the next day that the credit entry in respect of PWT payable is squared up when a debit entry is passed consequently there was no need for any cash payment - no substantial question of law arises for consideration - in favour of assessee.
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