https://www.taxtmi.com/caselaws?id=760050 ITAT Chennai dismissed revenue's appeal regarding classification of lottery prize winnings from unsold tickets. The assessee, a lottery distributor, won prizes on unsold tickets and claimed these as business income, setting off various expenses including ticket costs. Revenue contended winnings should be treated as separate income without business expense deductions. ITAT held that prize winnings from unsold tickets constitute realization of closing stock during ordinary business operations of lottery distribution. Following Mumbai Tribunal's decision in assessee's own case for AY 2014-15, ITAT ruled no restriction exists under sections 70/71/74A or 115BB for setting off business losses against lottery income, as Finance Act 1986 removed such bars. The purchase price for lottery tickets was indivisible between sold and unsold tickets, making prize winnings legitimate business income subject to expense deductions. en-us Wed, 09 Oct 2024 00:00:00 +0530 Wed, 18 Dec 2024 14:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760050 ITAT Chennai dismissed revenue's appeal regarding classification of lottery prize winnings from unsold tickets. The assessee, a lottery distributor, won prizes on unsold tickets and claimed these as business income, setting off various expenses including ticket costs. Revenue contended winnings should be treated as separate income without business expense deductions. ITAT held that prize winnings from unsold tickets constitute realization of closing stock during ordinary business operations of lottery distribution. Following Mumbai Tribunal's decision in assessee's own case for AY 2014-15, ITAT ruled no restriction exists under sections 70/71/74A or 115BB for setting off business losses against lottery income, as Finance Act 1986 removed such bars. The purchase price for lottery tickets was indivisible between sold and unsold tickets, making prize winnings legitimate business income subject to expense deductions. Case-Laws Income Tax Wed, 09 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760050