TMI Blog2016 (8) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... , we are of the opinion that the amount is withdrawn from the trust account and it is not purchased by the appellant from the individual account.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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have paid taxes on their respective share of income from the said lottery prize? Tax Appeal No. 90 of 2002 Whether in the facts and circumstances of the case, the ITAT was right in law in giving a finding that the appellant was liable to pay tax on an assumed income of ₹ 1,66,949/- at 12% on the balance of the lottery prize? 3. The facts of the case are that the assessee is one of the trustees of Neha Trust which is registered on 21.12.1981. The assessee purchased a lottery ticket from the trust fund. The draw of lottery was made on 14.7.1983 which was published on 15.7.1983. It has come on record that the assessee made an application to the Director of Lotteries on 16.7.1983 which is on page No. 43 of the paper book. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered and merely a trust deed is executed, the amount which has been shown withdrawn in the books of account cannot be accepted. Individual Bahadursingh T. Waghela has withdrawn the amount. He was the buyer of the ticket and he will be entitled to receive it and is liable to pay tax. He has relied on the decision of this court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd. v. Commissioner of Income-tax reported in 227 ITR 172 where at page No. 181 it is observed as under: In other words, if the capital of a company is fruitfully utilised instead of keeping it idle, the income thus generated will be of revenue nature and not an accretion to capital. Whether the company raised the capital by issue of shares or deben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 6. So far as Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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