The assessee had made purchases of cloth from a shop. He won one Kg. of gold in lucky draw. He was issued 600 grams of gold coins and balance was deducted under S.\u00a0 194B being 40 per cent of the prize money. The 1 Kg. of gold coins was valued at Rs.4.29 lakh and total tax deducted at source including surcharge was Rs.1.89 lakh on the impugned amount.\u00a0 The AO held that the tax had been rightly deducted at source by the Trust authorities.\u00a0 CIT (A) confirmed the order of the AO. On appeal the Tribunal held that the term ‘lottery’ is required to be construed without the aid of Explanation. The Explanation was added with effect from 1-4-2002. Explanation is neither retrospective nor merely clarificatory in this case. The term ‘lottery’ is widened to bring within the ambit also price won without any contribution for participation. In other words the Explanation, added with effect from 1-4-2002, is not applicable to this appeal which relates to assessment year 2000-2001. Accordingly the essential ingredients of ‘lottery’ as it stood prior to the insertion of Explanation to S.\u00a0 2(24)(ix) is absent in the facts and circumstances of the case and the same cannot be taxed as a ‘lottery’. Hence, the order of the CIT(A)\u00a0 is reversed .(AY. 2000-01)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 194B : Deduction at source-Winning from lottery\u2013Lucky draw price coupons-Gratuitous distribution without any price being paid by customers-Not lottery\u2013Not liable to deduct tax at source . [S. 2(24 ) (ix), 115BB]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9070","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2mi","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=9070"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9070\/revisions"}],"predecessor-version":[{"id":19614,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/9070\/revisions\/19614"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=9070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=9070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=9070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}