2006 (5) TMI 121 - AT - Income Tax

Summary

Issues:
Taxability of Matiz car received by the assessee from a company under a scratch card scheme.

Analysis:
1. The appeal concerned the taxability of a Matiz car received by the assessee from a company under a scratch card scheme related to the purchase of a refrigerator. The delay of 9 days in filing the appeal was condoned due to inadvertent reasons.

2. The assessee, a teacher, received the car as a prize from the company. The Assessing Officer assessed the value of the car as winning from a lottery for the assessment year 2002-03. The assessee contended that the car was a gift and not from a lottery, citing the absence of purchasing a lottery ticket or making any contribution for participation.

3. The Departmental Representative argued that the scratch card scheme falls under the definition of 'lottery' as per the Explanation to section 2(24)(ix) of the Income-tax Act. The Tribunal analyzed the definitions of 'lottery' from various legal sources and concluded that the scratch card scheme qualifies as a lottery under the Income-tax Act.

4. The Tribunal referred to the New Oxford Dictionary of English and other legal definitions of 'lottery' to establish that a contribution by the party is essential for winning from a lottery. As the assessee made a payment for the refrigerator, which included the scratch card, the Tribunal determined that the scheme met the criteria of a lottery.

5. Considering the inclusive definition of 'lottery' under the Income-tax Act, the Tribunal rejected the assessee's argument that the car was received as a gift and not from a lottery. The decision of the Revenue Authorities to tax the value of the car as winning from a lottery was upheld, and the appeal of the assessee was dismissed.