TMI Blog1979 (11) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... mobile Association of Eastern India and the Indian Oil Corporation, and supported also by other regional automobile associations as well as the Federation of Indian Motor Sports Clubs and the Federation of Indian Automobile Associations. The event was restricted to private motor cars. The length of the rally route was approximately 6,956 kilometers. The race was divided into four legs, (1) Northern Leg, Calcutta to Delhi ; (2) Western Leg, Delhi to Bombay; (3) Southern Leg, Bombay to Madras; and (4) Eastern leg, Madras to Calcutta. According to r. (2) of the regulations, the emphasis was on endurance driving and it was designed as a reliability test for automobiles. The race was to be run having due regard to the traffic regulations at the different places, as well as to the regulations laid down by the Rally Committee. The start could be from one of the four points, namely, Calcutta, Delhi, Bombay or Madras and the finishing was in the anti-clockwise direction, that is, the person starting from Calcutta was to complete the rally at Calcutta in the anti-clockwise direction and he would have to return to the starting point. The prizes were to be awarded on the basis of the success a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following sub-clause shall be inserted, namely,- (ix) any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever." It is this provision that is relied on in the present case. The attempt of the revenue is to bring the case within the scope of the expression " any winnings from ...... races ...... and other games of any sort ........" In order to get a proper background of this provision, it would be necessary to refer to the other amendments made to the Act. Section 4 of the Finance Act, 1972, substituted cl. (3) of s. 10 in the place of old cl. (3). The new provision, in so far as it is material, runs as follows : " Any receipts which are of a casual and non-recurring nature, not being winnings from lotteries, to the extent such receipts do not exceed one thousand rupees in the aggregate :......... " There is a proviso to this cl. (3). It is unnecessary to refer to it for our purpose. Section 11 of the Finance Act, 1972, introduced s. 74A into the Act, and the said provision runs as follows : " (1) Where the net result of the computation made fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dictionary meanings that there are two forms in the expression " winning ", one in singular and the other in plural. As far as the plural form is concerned, it is given a specific meaning in the Oxford Dictionary. Especially, in current or modern usage, it is chiefly applied to " money won by gaming or betting ". Though the expression would in olden days comprehend all things or sums gained, gains, profits, earnings, still its modern usage is confined to money won by gaming or betting. In the present case, as already seen, the assessee participated in a race which involved skill in the performance of driving of the vehicle. He had to cover a very long distance and had to qualify by getting the least of the penalty points. The idea obviously is to encourage the motorists to comply with all the regulations. It is not mere speed that counts. Perhaps, in the present case, speed would be only a secondary thing for winning the race, in the sense that he had to complete the race within the particular time but the emphasis is on the least number of penalty points being incurred by the motorists concerned. The Supreme Court in State of Bombay v. R.M.D. Chamarbaugwala [1957] 2 MLJ (SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Prevention of Food Adulteration Act. In the course of the judgment, in para. 10, at page 233, s. 2(v) of the Act then under construction was referred to and it was pointed out : " He who runs and reads the definition in s. 2(v) of the Act will answer back that supari is food. The lexicographic learning, pharmacopic erudition, the ancient medical literature and extracts of encyclopaedias pressed before us with great industry are worthy of a more substantial submission. Indeed, learned counsel treated us to an extensive study to make out that supari was not a food but a drug ... In the field of legal interpretation, dictionary scholarship and precedent-based connotations cannot become a universal guide or semantic tyrant, oblivious of the social context, subject of legislation and object of the law." Again reference was also made to Bolani Ores Ltd. v. State of Orissa, AIR 1975 SC 17, and at page 25, the following passage occurs : " As usual references have been made to the dictionaries but quite often it is not possible to hold a dictionary in one hand and the statute to be interpreted in the other for ascertaining the import and intent of the word or expression used by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxed. We do not find this to be the legislative intent. The learned counsel for the Commissioner pointed out that if the above construction was correct or was intended by Parliament, then the words, " any winnings from gambling or betting of any form or nature whatsoever " would be tautologous and would not find a place in the provision. His point was that tautology should not be attributed to the Legislature. It may be that the draftsman was overanxious not to miss by any chance the gambler and his kind in the extended net of taxation. Hence, he made clear the intention by including the obvious also. It has to be remembered that this provision was introduced with a view to counteracting the evasion of tax. This is brought out in the memorandum explaining the provisions of the Finance Bill, 1972, and this memorandum is to be found in volume 83 of the Income-tax Reports (Statutes) at page 177. The following background is given as and by way of explanation to the introduction of the provisions under the Finance Act : " 13. Under the existing provisions of the Income-tax Act, receipts which are of a casual and non-recurring nature are exempt from tax except where the receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning that we have given above. It contemplates some kind of losses being liable to be incurred by the person, whose income includes the amount taxable under s. 2(24)(ix). There is no likelihood of any loss being incurred by a person who enters into a contest for a prize. For instance, gambling or betting may even be a habit so that a person who habitually indulges in it may sometimes receive income and may also incur losses. In such a case, the legislature did not want to tax only the winnings leaving alone the losses. Winning prizes of this kind cannot be a habit. There is no possibility of such an adjustment for loss in a case of this kind. Section 74A thus supports the construction placed above. Reliance was placed during the course of the argument on s. 10(3) on behalf of the revenue. It does not appear to support the contention put forward. That is a provision which exempted the receipts of casual or non-recurring nature to the extent such receipts did not exceed one thousand rupees in the aggregate. However, even the exemption of one thousand rupees would not apply to winnings from lotteries. Therefore, the use of the expression " not being winnings from lotteries " does ..... X X X X Extracts X X X X X X X X Extracts X X X X
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