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Issues:
Assessment of lottery income on receipt basis for the assessment year 1988-89. Analysis: The Revenue raised a ground in appeal regarding the assessment of lottery income on receipt basis for the assessment year 1988-89. The assessee won a lottery prize in 1983 but faced a delay in disbursement due to a legal dispute. The Assessing Officer included the lottery income in the assessment for 1988-89 as it was received during the previous year. The CIT(A) held that the income was accrued in 1983, and the Assessing Officer recognized the right to receive it earlier. The Revenue contended that the income should be assessed on a receipt basis due to the absence of maintained books of account by the assessee. The CIT(A) considered the method of accounting followed by the assessee and various judicial decisions. The Revenue argued that the lottery income should be assessed on a receipt basis due to the lack of maintained books of account by the assessee. The assessee claimed that the income accrued in 1983 and should not be assessed in a subsequent year. The Tribunal analyzed the provisions of the Income Tax Act related to income from lottery and the method of accounting. It was found that the assessee did not maintain books of account, and the income from the lottery was to be assessed on a receipt basis for 1988-89. The Tribunal disagreed with the CIT(A) and upheld the Assessing Officer's order, concluding that the income accrued only when the prize money was disbursed by the State of Tripura after the legal dispute. In conclusion, the Tribunal allowed the Revenue's appeal, affirming the assessment of the lottery income on a receipt basis for the assessment year 1988-89. The decision was based on the absence of maintained books of account by the assessee and the timing of income accrual after the legal dispute was resolved.
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