2002 (9) TMI 417 - AT - Income Tax

Summary

Issues:
Common issue involving lottery winnings treated as unaccounted investment by Assessing Officer.

Analysis:
The case involved two appeals raising identical grounds related to the treatment of income from lottery winnings. The assessees, a mother and son, each received Rs. 6,00,000 from winning a lottery. The Assessing Officer suspected the winnings were used to convert unaccounted money. The CIT(A) directed further inquiries to establish the genuineness of the winnings. The subsequent assessments repeated the original findings. The CIT(A) concluded that there was no concrete evidence against the assessees and allowed the appeals, holding the amounts as lottery winnings. The Revenue contended that the circumstances were suspicious, highlighting inconsistencies in the lottery process. The assessees argued that suspicion alone cannot be the basis for assessment, citing legal precedents. The Tribunal found that the Assessing Officer's findings were based on mere suspicion without supporting evidence. While the circumstances raised strong suspicions, they could not be the sole basis for assessment. The assessees provided lottery tickets, bank drafts, and TDS certificates as evidence. The Tribunal upheld the CIT(A)'s decision, emphasizing the lack of concrete evidence against the assessees and dismissing the Revenue's appeals.