TMI Blog2018 (11) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Income Tax (Appeals), while making a diametrically opposite observation that Section 58(4) of the Act is not applicable. The 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 in favour of revenue. - Tax Case Appeal No.1165 of 2008 - - - Dated:- 22-10-2018 - Mr.Justice T.S. Sivagnanam And Mrs.Justice V. Bhavani Subbaroyan For the Appellant : Mrs.K.G.Usharani for M/s.T.S.Senthilkumar For the Respondent : Ms.Sri Lakshmi Valli JUDGMENT T.S.SIVAGNANAM, J. This appeal by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered in favour of the Revenue and against the assessee. The operative portions of the said decision read as follows:- ' 11. From the above, it is clear that the intent of the legislature, as a measure of rationalization, was to reduce the rate of tax on such winnings from 40% to 30%, with effect from 1.4.2002. Even though the said amendment 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of calculating tax has to be strictly in accordance with such provisions and not otherwise. If the circular relied on by the assessee is taken into consideration, then what is envisaged by the statute would be given a go-by and the purport and intent of the Parliament in enacting that special provision in the statute would become a futile exercise. Therefore, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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