Law:

Section:

Section 115BB, read with sections 154 and 10(3), of the Income-tax Act, 1961 - Lottery, crossword puzzles, horse races, etc., tax on - Assessee's return of income for his income from winning from lottery was accepted by Assessing Officer and a demand of tax was made - Subsequently, Assessing Officer passed a rectification order, allowing exemption under section 10(3) - Total income was fixed and 40 per cent of tax was charged under section 115BB along with surcharge - Tribunal directed Assessing Officer to accept tax return originally filed by assessee - Whether since omission to allow exemption under section 10(3) was an error apparent from records, rectification of assessment by invoking section 154 in that regard was justified - Held, yes - Whether since Tribunal had arrived at conclusion that legal issue was a debatable one without considering provisions of section 115BB and CBDT Circular, Tribunal had erred in holding that assessee was entitled to succeed - Held, yes (matter remanded back) Circulars and notifications - Board's Circular No. 461, dated 9-7-1986 FACTS The only source of income of the assessee during the relevant assessment year was money won from lottery. He filed a return of income showing the winning amount of lottery as the total income after deducting the agent's commission and the seller's bonus. The Assessing Officer accepted the returned income and made a demand together with interest after giving credit for TDS. But subsequently, the Assessing Officer under section 154 passed a rectification order allowing exemption under section 10(3). Thus, total income was fixed and under section 115BB 40 per cent of the tax of that amount was charged along with surcharge. After reducing the TDS the demand was refixed in the rectification order. The Commissioner (Appeals) agreed with the findings of the Assessing Officer. On appeal, the Tribunal stated that the matter being highly debatable, no adjustment could have been made by the Assessing Officer and, therefore, directed the Assessing Officer to accept the tax return originally filed by the assessee. On reference, the department contended that section 115BB, being a special provision, the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492