9911796707
TMI Blog1988 (10) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... d his wife and two children and approached the Income-tax Officer for an authorisation to deduct the tax at lower rates. The ITO gave a certificate No. 1/84-85 dated 18-9-1984 under section 197 of the Income-tax Act, 1961 authorising the Hony. Secretary, Indian Cancer Society to deduct income-tax at the rate of 15 per cent on the prize amount when paying the lottery amount to M/s. S. Arumugam and three others. He then deposited the ticket with the Pondicherry Co-operative Urban Bank Ltd. which wrote a letter dated 21-8-1984 to the Indian Cancer Society on behalf of S. Arumugam, A. Poongavanam and two minor children, A. Sivakumar and A. Ganapathy seeking settlement of the claim. The Indian Cancer Society deducted tax at source of Rs. 12,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s pointed out on behalf of the assessee that there was an oral agreement to purchase the tickets jointly and share prize equally and the document had been written only to substantiate that oral agreement which may not have been believed by the ITO. It was submitted that nothing prevented the assessee from creating contemporaneous documentary evidence and, therefore, when an honest claim was made regarding an antecedent oral agreement it should be accepted. On the other hand, it was contended on behalf of the revenue that the claim has been made only for the purpose of distributing the lottery winnings and avoiding the incidence of tax on the total amount in the hands of a single person. It was submitted that the agreement was invalid becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a case therefore where the claim can rest merely on an oral agreement which will be a matter of belief and which cannot be tested solely with reference to subsequent documentation or conduct. If a document is produced to evidence the alleged earlier oral agreement it could be said that it is unnatural for a document to be executed between a husband and wife and if no documentation is made it could equally be said that there is no evidence to prove the agreement. If such subsequent evidence offered by the assessee is kept aside, there would still remain the question of believing the antecedent oral agreement. That depends upon the question whether we believe that the assessee had purchased the ticket on behalf of himself and the other membe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
