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Facts
The assessee received Rs. 31,900 from what the department alleged was a lottery win, and the Assessing Officer taxed Rs. 26,767 at a higher rate after allowing a Rs. 5,000 deduction. The assessee contended it was a gift from TATA Teleservices Ltd. in the form of a scratch card.
Held
The Tribunal noted that neither the Assessing Officer nor the CIT(A) had adjudicated whether the amount was a lottery win or a gift. To ascertain the taxability, the relevant facts needed verification.
Key Issues
Whether the amount received by the assessee was a lottery winning or a gift, and its consequent taxability.
Sections Cited
115BB(ii)
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Income Tax Appellate Tribunal, RANCHI BENCH(SMC
Before: SHRI PARTHA SARATHI CHAUDHURY
Assessee represented by Rajesh Kumar Kapardar, Adv. Department represented by Shri Khubchand T. Pandya, Sr.DR Date of hearing 04/02/2025 Date of pronouncement 06/02/2025 O R D E R PER: PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER: 1. This appeal preferred by the assessee emanates from the order of learned Commissioner of Income Tax (Appeals), Dhanbad [in short, the ld. CIT(A)] dated 25/01/2019 for the Assessment Year (AY) 2008-09 as per the grounds of appeal on record.
2. This is a matter in which the department has alleged that the assessee has won Rs. 31,900/- from lottery. The Assessing Officer provided relief of Rs. 5,000/- as maximum limit of allowability under the Act. Therefore, the addition of Rs. 26,767/- was made by the Assessing Officer stating that this amount had to be taxed under Section 115BB(ii) of the Income Tax Act, 1961 (in short, the Act) at higher rate. The same was upheld by the ld. CIT(A).
Surendra Ram Bharti Vs ITO 3. Per contra, the contention of assessee through ld. Authorised Representative that it is not a lottery rather it is a gift from TATA Teleservices Ltd. in the form of scratch card which was given to the assessee. The assessee had won a bike through scratch card of which the value was Rs. 31,900/-. Therefore, question does not arise for taxing this amount of gift at a higher rate under Section 115BB(ii) of the Act.
I have carefully considered the submissions placed by the parties and the documents on record alongwith facts and circumstances in this case. The contention of department is that the alleged amount has been won in lottery whereas the assessee has contended that it is in the nature of a gift. However, neither in the order of Assessing Officer nor in the order of ld. CIT(A), this fact has been adjudicated. In order to ascertain the taxability of an income, the relevant facts needs to be verified. In view thereof, I set aside the order of ld. CIT(A) and remand the matter back to the file of Assessing Officer for necessary verification and passing an order de novo as per law complying with the principles of natural justice. Needless to direct that before passing the order on merit, the Assessing Officer shall grant reasonable opportunity of hearing to the assessee. As per the above terms, the grounds of appeal
raised by the assessee stands allowed for statistical purposes only.