The Tribunal held that the loss incurred by the area distributor from the unsold lottery tickets shall be eligible for set off against winnings from lotteries under Section 71 of the Act and the lottery winnings from lotteries shall be taxed under Section 115BB irrespective of the head to be taxed i.e., business income or income from other sources. (AY. 2014-15)
Pooja Marketing v. PCIT (2021) 212 TTJ 306 / 204 DTR 1 (Mum.) (Trib.)
S. 115BB : Winning from lotteries-Irrespective of the head of the income, the winnings from lotteries shall be taxed at a special rate-The business loss incurred by the assesse after exclusion of prize money earned from the unsold lottery tickets is eligible for set off against such winnings from lotteries. [S. 2(24)(ix), 28(i), 56(2)(ib), 58(4), 71]