9911796707
TMI Blog1988 (2) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... Baby Suman Nanda and Baby Visharda Nanda, daughters of Shri Satrughan Nanda, won a lottery prize of Rs. 1 lac. After deduction of commission of Rs. 10,000 the balance amount of the prize was at Rs. 90,000. Each of the two babies, therefore, got Rs. 45,000. This prize was in respect of 32nd draw of Himachal Pradesh State Lottery, Shimla held on 24th Aug., 1984. The ITO assessed the entire amount of Rs. 90,000 in the status of AOP of the two babies, i.e. Suman Nanda and Visharda Nanda. The assessment was made through Shri Satrughan Nanda their father. According to the ITO, there were two ingredients to form AOP i.e. they must combine to engage in an activity and activity must be pursuant to combined will of the members of the AOP. The ITO he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was no general enterprise to produce income and the activities listed by the ITO could not be said to be enterprises to produce income. According to him, purchase of lottery ticket involved no enterprise. After its purchase, one goes to sleep and it is sheer luck that may favour the purchaser to win the prize. No efforts whatsoever were needed and, therefore, it is not a case of an AOP. For this proposition, he relied on the celebrated judgment of the Hon'ble Supreme Court in the case of CIT vs. Indira Balkrishna (1960) 39 ITR 546 (SC). He also relied on the judgment of the Punjab and Haryana High Court in the case of CIT vs. Smt. Saraswati Bai and Ors. (1981) 23 CTR (P H) 330 : (1982) 137 ITR 656 (P H). He also urged that the ITO had m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s can be said to have formed an AOP. We have already referred to the judgment of the Supreme Court where it is held that combination of more than one persons should be there in a joint enterprise to produce income. The word 'enterprise' has not been defined anywhere in the Act. We have, therefore, to look to the Dictionary meaning of the word. According to the Chamber's twentieth Century Dictionary, Revised edition 1971, the word 'enterprise' has been given the following meaning at page 354: "an undertaking; a bold or dangerous undertaking; an adventure; readiness; initiative and daring in undertaking." From the above meaning of the word 'enterprise' it is clear beyond any shadow of doubt that mere purchase of lottery ticket. In purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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