1992 (11) TMI 123 - AT - Income Tax

Summary

Issues:
1. Addition of betting tax by the Appellate Commissioner.
2. Application of section 43B for non-remittance of betting tax.
3. Liability of the assessee Club in collecting betting tax.
4. Interpretation of the Bengal Amusements Tax Act, 1922.
5. Justification of addition under section 43B.
6. Previous decisions on similar issues.
7. Arguments of the Assessee's Counsel and Departmental Representative.
8. Analysis of the provisions and facts by the Tribunal.
9. Decision on the appeal.

The judgment involves the Appellate Commissioner confirming the addition of a sum of Rs. 77,44,592 as betting tax received by the assessee Club from licensed Bookmakers. The issue revolves around the application of section 43B for non-remittance of the betting tax collected. The liability of the assessee Club in collecting the betting tax is scrutinized under the Bengal Amusements Tax Act, 1922. The Tribunal analyzed the legal provisions and facts, emphasizing that the betting tax collected by the club was not payable to the government but was trust money to be remitted. The Tribunal highlighted previous decisions and concluded that the addition under section 43B was unwarranted. The Tribunal criticized the Appellate Commissioner's reasoning for confirming the addition based on the mingling of funds in the club's bank account. Ultimately, the Tribunal allowed the appeal and directed the deletion of the addition of Rs. 77,44,592. The second ground of the appeal was not pressed and hence no decision was given on it.