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TMI Blog1980 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... n income of Rs. 12,000 from M/s. Rohit Finance & Chit Fund Company Private Ltd. for the assessment year 1974-75. The assessee claimed exemption of Rs. 8,500 thereon under s. 80TT of the Income-tax Act, 1961 (hereinafter referred to as " the Act "). The ITO took the view that the Provisions of s. 80TT could not be invoked in the matter. However, he allowed exemption of Rs. 1,000 under s. 10(3) of the Act. In his opinion, the income accruing to the assessee was of casual nature. On appeal, the AAC reversed the finding of the ITO and held that the assessee was entitled to exemption under s. 80TT of the Act. The Tribunal dismissed the appeal of the revenue. At the instance of the revenue, the Tribunal has referred the following question of law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the word " lottery " is not defined under the Act. In Webster's New International Dictionary, the word " lottery " has been defined to mean a scheme by which one or more prizes are distributed by chance among persons who have paid or promised a consideration for a chance to win them, usually as determined by the numbers on tickets as drawn from a lottery wheel. In Legal and Commercial Dictionary by S. D. Mitra, the word " lottery " has been defined as under : " A lottery has been compendiously defined as a scheme for the distribution of money by chance. It usually, if not always, takes the form of the creation of a fund by the participants in the lottery, who buy tickets or pay subscriptions in consideration of an offer by the promot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribution in the scheme. In our considered opinion, the income of the assessee from M/s. Rohit Finance and Chit Fund Company Private Ltd. was an income from the lottery and, therefore, the assessee is entitled to the deductions as provided under s. 80TT of the Act. A Full Bench of the Madras High Court in Sesha Ayyar v. Krishna Ayyar, AIR 1936 Mad 225, while interpreting the provisions of s. 294A of the Indian Penal Code in a lengthy judgment, outlined the basic ingredients of lottery. The view which we have taken finds ample support from the said Full Bench authority of the Madras High Court. Shri D. N. Awasthy, on the other hand, has placed reliance on a judgment of the Full Bench of the Madras High Court in Narayana Aiyangar v. K. Vellach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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