Lottery - Definition / Legal Terminology - Income Tax

Explanation.(i) - For the purposes of sub-clause (ix) of clause (24) of section 2 of the Income tax Act 1961 ,- Lottery includes- winnings from prizes awarded to any person by draw of lots or by chance or in any other manner whatsoever, under any scheme or arrangement by whatever name called; STATE OF KARNATAKA ANR. ETC. VERSUS STATE OF MEGHALAYA ANR. ETC.- [ 2022 (3) TMI 1093 - SUPREME COURT ] Whether the subject lotteries organised by the Central Government and the State Governments being carved out of betting and gambling which is dealt with under Entry 34 of List II and being placed in Entry 40 of List I would also exclude the power of taxation on the same in Entry 62 of List II? In the instant case, the tax imposed is on the gambling nature of lotteries, which field is covered in its entirety under Entry 62 of List II and the power to impose tax under this Entry extends in relation to lottery of every kind, with no distinction as to the entity organizing the same. Thus, in the context of lotteries, the organisation and conduct of a lottery scheme being a pan India activity, when any State Government permits the Government of India or any other State Government to organise the lottery scheme in that State, Entry 62 of List II would enable the Legislature of that State to levy taxes on the same.