TMI Blog2018 (10) TMI 1505X X X X Extracts X X X X X X X X Extracts X X X X ..... and maintaining race horses, would fall under Section 115BB of the Act. Total winnings from betting of the assessee should be brought to tax at the rate of 40% as contemplated under Section 115BB of the Act. The order passed by the Tribunal, which affirmed the order of the Commissioner of Income Tax (Appeals), is liable to be set aside. - Decided against assessee. - Tax Case Appeal No.1328 of 2008 - - - Dated:- 5-9-2018 - Mr. Justice T.S. Sivagnanam For the Appellant : Mr.T.R.Senthil Kumar, SSC for Ms.K.G.Usharani For the Respondent-2 : Mr.M.P.Senthil Kumar JUDGMENT T.S.SIVAGNANAM, J. This appeal, by the Revenue, has been directed against the order passed by the Income-tax Appellate Tribunal, Madras B Benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is not applicable to the case of hand, what can be deduced from the same is the fact that the higher rate of tax as applicable to winnings from betting, etc. has been brought down to 30%, on a par with the rate applicable for other incomes as a measure of rationalization. Therefore, the intent of the legislature to levy tax at the rate of 40% for the relevant assessment year on the winnings from betting, etc. is apparent as otherwise, the very existence of the said provision in the Act would be meaningless. 12. On a careful perusal of the above provisions of law and the legislative intent, this Court is not inclined to accept the view as propounded by the Tribunal and the Commissioner (Appeals), as Section 115BB of the Act is a stan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the reliance placed on the said circular by the Commissioner of Income Tax (Appeals) as also by the Tribunal is misconceived and does not stand legal scrutiny. 14. Further, it is curious to note that the Tribunal, in the penultimate paragraph of its order, while observing that Section 58(4) with its proviso clause does not apply to the assessee's case, the assessee being the owner of horses maintained by him for running in horse races , has held that the A combined reading of Section 115BB and the proviso to section 58(4) along with the CBDT circular no.721 dated 13.09.1995 fortify the action of the Commissioner (Appeals) and we see no justification to interfere with the orders of the Commissioner (Appeals) on this issue . We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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