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TMI Blog2000 (10) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction under section 80TT in respect of winnings from jackpot ? The factual position, in a nutshell, is as follows : The assessee, an individual, filed his return of income for the assessment year 1974-75 corresponding to the accounting year ending on March 31, 1974. On February 3, 1974, the assessee had won a sum of Rs. 1,26,700 as jackpot and the said amount was paid to the assessee by the Delhi Race Club (1940) Ltd. The assessee treated this amount as income and claimed deduction under section 80TT of the Act. Such deduction was claimed on the ground that winning of jackpot was in the nature of winnings from a lottery. The Income-tax Officer, however, did not allow the deduction under section 80TT of the Act, being of the view that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 2(24)(ix), section 10(3), section 74A and section 80TT of the Act read as follows : "2. (24) 'income' includes---. . (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. 10. In computing the total income of a previous year of any person, any income falling within any,of the following clauses shall not be included---. . . (3) any receipts which are of a casual and non-recurring nature, to the extent such receipts do not exceed five thousand rupees in the aggregate : Provided that where such receipts relate to winnings from races including horse races, the provisions of this clause shall have effect as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment years immediately succeeding the assessment year for which the loss was first computed. 80TT. Deduction in respect of winnings from lottery.---Where the gross total income of an assessee, not being a company, includes any income by way of winnings from any lottery (such income being hereafter in this section referred to as winnings), there shall be allowed, in computing the total income of the assessee, a deduction from the winnings of an amount equal to --- (a) in a case where the winnings do not exceed five thousand rupees, the whole of such winnings ; (b) in any other case, five thousand rupees as increased by a sum equal to fifty per cent. of the amount by which the winnings exceed five thousand rupees." Section 74A was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the decision, the apex court held that the car rally was a contest, if not a race, and the assessee entered the contest to win. What he got was a return for skill and endurance. It was "income" construed in its widest sense, though it was casual" in nature (see CIT v. G. R. Karthikeyan [1993] 201 ITR 866 (SC)). In Corpus Juris Secundum the expression "lottery" has been defined as pooling the proceeds derived from chances or tickets taken or purchased and then allotting such proceeds or a part of them or their equivalent by chance to one or more such takers or purchasers are indicia of a 'lottery'. It is necessary that winner must not only be a contributor to the prize money, but also be a participant." In Webster's Dictionary, a lott ..... X X X X Extracts X X X X X X X X Extracts X X X X
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