TMI Blog2005 (3) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A) has erred in law and on facts in not appreciating that there was no obligation of the appellant in deducting tax at source as provisions of section 194B of the Act are not at all attracted in the facts and circumstances of the appellant s case. 3.The ld. CIT(A) erred in law and in facts in not appreciating that Explanation ( i ) to section 2(24)( ix ) of the Act is not at all attracted and in any case and without prejudice, the said Explanation was inserted into the statute book with effect from 1-4-2002 which is much later then the year under consideration. 4.The ld. CIT(A) erred in law and on facts in holding that the impugned order is not barred by limitation and passed within the statutory time limit prescribed. U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26-2-2004 i.e., after a period of about six years to pay TDS, penalty and penal interest thereon. The observations of the Assessing Officer are as under : In response to the show-cause notice, the assessee filed its reply dated 2-3-2004 with this office on 4-3-2004, stating that it was a sales promotion scheme. The basic ingredients that a lottery scheme should having are missing from the scheme. It was novel way of giving incentives and rewards to their dealers, who may be instrumental in augmenting their sales position. None of dealers have paid any price for gift (Lucky Draw) coupons to participate in Lucky draw scheme and their primary and main intention was to buy their goods only. Hence there was no element of risk or loss to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tting of any form or nature whatsoever. [ Explanation. For the purposes of this sub-clause, ( i )"lottery" includes winnings from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement by whatever name called; ( ii )"card game and other game of any sort" includes any game show, an entertainment programme on television or electronic mode, in which people compete to win prizes or any other similar game;]" The Explanation above was inserted by the Finance Act, 2001 w.e.f. 1-4-2002 by which the meaning of word "Lottery" have been widened to include the winning of any prize, by drawing lots or by chances. This clearly shows that prior to 1-4-2002, the Legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the action of the assessee is inordinately delayed by the time the assessment of the assessee and the payee is over. The financial year involved is 1996-97 and the action has been taken as late as February 2004, i.e., the action for enforcing the TDS has been initiated after seven years. This being the case of inordinate delay in not taking the action within the reasonable time, will make the action time-barred on the principle of natural justice. 6. The learned DR, on the other hand, contended that insertion of provision to section 2(24)( ix ) does not imply that word "lottery" did not include the one organized by the assessee. The insertion is clarificatory in nature. Since the word "lottery" is comprehensively enough to inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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