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2019 (11) TMI 260 - AT - Income TaxTaxability of Value of 1 kg. of gold as winning from “Lottery” - assessee did not pay any consideration for the price coupons. - the price coupon given to the assessee was under a scheme of the Kasargod Vyapari Vyavasaya Ekopana Trust (KVVES Trust) - HELD THAT:- It is customary in Kerala to buy new clothes during onam festival. The intention of the assessee was to purchase new clothes for himself and his family. The assessee approached the cloth merchant with this predominant intention. This particular scheme of distributing free coupons at the time of festival seasons like Onam is offered by almost all the merchants in the town, be it Textiles, Footwear, Groccery, Jewellry etc. In the case of this assessee, the choice of a particular cloth merchant was the availability of the desired dress material at his affordable price and not the offer of a free coupon. Hence it cannot, by any stretch of imagination, be presumed that the assessee visited a particular merchant and purchased the dress material from him with intention to participate in the lot. Hence there is ‘no intention to participate’. Essential ingredients of `lottery’ as it stood prior to the insertion of Explanation to section 2(24)(ix) of the I.T.Act is absent in the facts and circumstances of the case and the same cannot be taxed as a `lottery’. Hence, we reverse the order of the CIT(A). It is ordered accordingly.
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