TMI Blog1987 (3) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... body when it is applied and also to coin a slogan on Amritanjan. The decision of the company was final and binding. The assessee won the first prize in the contest and opted for Premier Padmini car in preference to a cash of Rs. 40,000. In his first return dated 19-8-1980 he declared the income of Rs. 40,000 as winnings from lottery and claimed deduction under section 80T. However, vide revised return dated 25-11-1981 the assessee claimed that the income received from the prize winning from Amritanjan company was totally exempt from tax as it was casual and noon-recurring. The Income-tax Officer did not agree with the contention of the assessee and taxed the income at Rs. 39,000 under section 2(24)(ix) of the Income-tax Act. 3. Before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce or it was casual receipt and there was no certainty of the assessee's slogan for being picked up for a prize. Therefore the winning of the amount of Rs. 40,000 is akin to winning from a competition in the nature of a lottery. Therefore, it should be taxed as income under section 2(24) (ix) of the IT Act. Shri K.C. Devdas, strongly relied upon the Appellate Assistant Commissioner's order and two decision relied upon by the Appellate Assistant Commissioner in support of his connection. 5. Section 2(24) (ix) of the Act was introduced from 1-4-1972 and it reads as follows: "any winnings from lotteries, cross-word puzzles, races, including horse races, card games and other games of any sort or from gambling, betting of any form or nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gained, gains, profits, earnings, still its modern usage is confined to money won by gambling or betting. 6. In the case before the Madras High Court the assessee participated in an All India Highway Motor Rally. According to the rules governing the rally the emphasis was on endurance driving and was designed as a reliability test for automobiles. The race was to be run having due regard to the traffic regulations at different places and the prize was to be ascertained by adopting a system of penalty points for violation of traffic rules and regulations. The competitor with the least penalty points was adjudged as successful among the participants. The assessee won the first prize in the rally and received Rs. 20,000 from the Indian Oil C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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