Lottery ticket valuation depends on official announcement and claim acceptance; no fair market value existed on the relevant date.

Under the M.P. State Lottery Rules, 1969, official publication of the prize-winning numbers in the Gazette constituted the draw's official announcement, and a prize claim had to be made within 30 days and accepted by the Director of Lotteries. As the Tribunal found that the list had not been published by 31 March 1977 and the claim had not been accepted by that date, the lottery ticket was held to have no fair market value on that date, against the Revenue.

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Issues: Whether the lottery ticket held by the assessee had no fair market value as on 31 March 1977.

Analysis: Under rule 33 of the M. P. State Lottery Rules, 1969, the list of prize-winning numbers was required to be published in the Gazette, and such publication constituted the official announcement of the draw. The Tribunal found that the list had not been so published by 31 March 1977. Rule 36 also contemplated that a prize claim had to be made within 30 days from the draw, failing which the prize money would lapse and stand forfeited, while rule 35 governed the manner of claim. On the Tribunal's findings, there had been neither official announcement nor acceptance of the claim by the Director of Lotteries by the relevant date.

Conclusion: The lottery ticket had no fair market value as on 31 March 1977, and the reference was answered in the affirmative against the Revenue.

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