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2016 (8) TMI 851 - HC - Income TaxLevy of tax on the whole of the lottery income - other beneficiaries of Neha Trust have paid taxes on their respective share of income from the said lottery prize in their individual capacity - Held that:- In our view, not accepting the trust deed and trust account, the authorities have seriously committed an error. The amount of ticket is from the trust account and the amount of prize is distributed amongst beneficiaries. Even T.D.S is shown in the balance sheet of the trust account. The learned counsel for the appellant has contended that the 1983 letter in the paper book is recently produced in the last week of July. Considering these facts, we are of the opinion that the amount is withdrawn from the trust account and it is not purchased by the appellant from the individual account. Taking into account the overall circumstances and the trust deed, distribution as per the trust deed and beneficiaries have paid taxes, all the authorities have seriously committed error in holding that the assessee is liable to pay tax. In the facts and circumstances of the case, we hold that the amount was received by the trust and not by the individual in his individual capacity. In that view of the matter, we answer the question in favour of the assessee and against the revenue. However, we make it clear that the amount of TDS and amount of tax collected from the appellant may be refunded to the appellant and lottery amount TDS may be refunded to Neha Trust.
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