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TMI Blog2012 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, 1961 (for brevity, 'the Act') in respect of Assessment Year 1996-97. 2. The facts of the case as revealed in the order of the Tribunal are that the assessee-respondent subscribed Rs. 10,000/- to PPF which formed part of Small Savings Scheme encouraged by the Government of Punjab. The scheme formulated by the Government of Punjab provided incentive to encourage small savings to augment its resources. According to the scheme the Government issued lucky coupon on every investment of Rs. 5,000/-, which also covered investment in PPF. The assessee-respondent was also issued a lucky coupon which won the prize of 1Kg. Gold. The Assessing Officer regarded the prize as income and found that it was worth Rs. 4,68,000/-. However, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where no definition of the word lottery has been given in the statute then the common dictionary meaning would have to be applied and as per this meaning the Concise Oxford dictionary defines "Lottery" as under: 1. a means of raising money by selling numbered tickets and giving prize to the holders of numbers drawn at random. 2. an enterprise, process etc., whose success is governed by chance." In the present scheme of giving prizes, whereas there was an element of chance as there is in a lottery, but there was no purchasing of tickets or pooling of such proceeds as such. It was rather an investment. There was no element of risk involved in the sense that an investor could lose his money. It may be observed that all the categories which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above mentioned definition of the word "lottery" it is obvious that it involves an element of chance. The person buys the ticket solely with the object of winning the prize and not for the purpose of making investment. If the person does not win any prize, money invested in the ticket is lost for ever. The assessee does not earn any return. In the present case, the assessee has invested in PPF and his contribution and return at the fixed rate remain the same. The same shall be given to the person on maturity of the scheme irrespective of the fact whether the person has won the prize or not. Therefore, there is no element of chance, risk of loss of the money of the participant. This issue came to be considered by the ITAT Madras Bench in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961. Ld. CIT(A) was justified in deleting the impugned addition. We confirm his order and dismiss all the grounds of appeal of the revenue." 6. Mr. Rajesh Katoch, learned counsel for the revenueappellant has vehemently argued that the definition of expression 'income' in clause (ix) of sub-section (24) of Section 2 of the Act is not exhaustive but only illustrative as is patent from the use of word 'includes'. Mr. Katoch has submitted that it cannot be regarded as exhaustive definition and is capable of being construed to include the income earned from winning a prize like the one in hand. According to the learned counsel the explanation which has been added on 1.4.2002 to clause (ix) of sub-section (24) of Section 2 of the Act, would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal was justified in holding that value of prize of 1 kg gold won by the assessee is not taxable under the Income-tax Act, 1961?" 9. In order to appreciate the contentions of revenue, it would be necessary to first examine the provisions of Section 2(24)(ix) of the Act and the explanation added w.e.f. 1.4.2002, which reads thus: "2. In this Act, unless the context otherwise requires,- (1) to (23) xxx xxx xxx (24) "income" includes - (i) to (viii) xxx xxx xxx (ix) any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever. Explanation.- For the purpose of this sub-clause,- (i) "lottery" includes winning from pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 'other games of any sort'. Thus, any statutory entry on the basis of the principle of exclusive definition have to be ejusdem generis with the expression already used in the definition clause. 12. Therefore, the reasoning adopted by the Commissioner and the Tribunal deserves to be approved when they hold that the expression 'lottery' would involve an element of 'chance' whereas when a person is making investment in a scheme like Savings Scheme then there is no element of 'chance' nor he loses any money invested by him. On the contrary the prize of the lottery ticket can never come back to the person purchasing the same. The investment in savings are paid back to the investor on maturity of the scheme irrespective of the fact whether h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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