Taxability of scratch card receipts turned on factual verification, leading to remand for fresh examination and decision.

Taxability of a scratch card receipt as lottery winnings under the Income-tax Act depended on verification of the underlying facts, including whether the amount was in fact a prize or a gift. Because the lower authorities had not adjudicated that factual controversy and the existing findings were insufficient for a conclusive determination, the matter was remanded to the Assessing Officer for fresh examination. The assessment order was set aside and a de novo order was directed after granting the assessee a reasonable opportunity of hearing.

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Issues: Whether the amount credited from the scratch card transaction was taxable as lottery winnings under Section 115BB(ii) of the Income-tax Act, 1961, or whether the factual nature of the receipt required verification before taxation.

Analysis: The factual controversy as to whether the receipt was a lottery winning or a gift was not adjudicated by the lower authorities. Since the taxability depended on verification of the relevant facts, the existing findings were found insufficient for a conclusive determination. The matter was therefore remanded to the Assessing Officer for fresh examination and a de novo order after granting reasonable opportunity of hearing.

Outcome: The assessment order was set aside and the matter was remanded for fresh verification and decision in accordance with law.

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