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TMI Blog2012 (8) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... State Lotteries Department and as that transactions take place on a day-to-day basis and it is on the next day that the credit entry in respect of PWT payable is squared up when a debit entry is passed consequently there was no need for any cash payment - no substantial question of law arises for consideration - in favour of assessee. - ITA 1098/2011 - - - Dated:- 23-7-2012 - MR. JUSTICE S. RAVINDRA BHAT, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Mr. Abhishek Maratha, Sr. Standing Counsel with Ms. Anshul Sharma, Advocate For Respondent: Mr.Rohan Ahuja, Advocate MR. JUSTICE S. RAVINDRA BHAT (OPEN COURT) 1. The revenue appeals against the decision of the Income Tax Appellate Tribunal (ITAT) in ITA No.4594/Del./2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31.03.2006 during which CPF amounted to Rs. 1,42,09,820/- and Contribution towards Participation in Draw ( CPD‟) was of Rs. 5,80,785.83. Copies of four purchase bills from M/s Valuable Reserves (I) Pvt. Ltd. confirming these facts were also filed. Besides these, a copy of balance confirmation of CPF amount of Rs. 1,42,12,620/- of M/s Valuable Reserves (I) Pvt. Ltd. and a copy of accounts of M/s Valuable Reserves (I) Pvt. Ltd. for the period from 01.04.2006 to 31.3.2007, (confirming the receipt of Prize Winning Tickets amounting to Rs. 1,42,09,820 on 01.04.2006), were also furnished. 3. The AO observed that the credit entry of Rs. 1,42,12,620/- had been squared off by M/s Valuable Reserves (I) Pvt. Ltd., by passing a debit note, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts of PWT payable; the assessee passes similar entries in respect of such PWT amounts payable to its stockist. Eventually the stockist, makes a similar entry to square up accounts with the Government in the State Lotteries Department. It is argued further that transactions take place on a day-to-day basis and it is on the next day that the credit entry in respect of PWT payable is squared up when a debit entry is passed. Counsel submitted that PWT amounting to Rs.1,36,77,950/- had already been received by the assessee against the PWT payable of Rs.1,42,12,620/- as on 31.3.06. This amount was shown as PWT in hand as on 31.3.2006; and the balance amount of Rs. 5,34,670 was duly squared up on the next day, i.e., 01.04.2006. Consequently t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is confirmed. The grievance of the department is, accordingly, rejected. 7. This Court has considered the submissions and the materials on record. CIT (Appeals) and the ITAT made observations and recorded findings on the nature of business, on the manner by which the assessee treated Prize Winning Tickets in its books, regarding the fact that at no stage it received monies towards satisfaction of those tickets, and also that the ultimate liability is that of the State Government. These observations and findings, in our opinion are purely factual. The AO‟s findings are based on the existence of the entries, without taking into account the nature of the trade and business, especially that the assessee is neither responsible for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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