1995 (1) TMI 121

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....e returned by the assessee. The assessee got an ordinary Maruti car on 17th Dec., 1987, as an incentive lucky prize awarded to the investors for National Savings Scheme 1986, from the Government of Kerala. The cost of this car was Rs. 81,728.30. The assessee did not disclose the value of this car as his income. Hence, the AO invoked the provisions of s. 143(2)(b) of the Act and completed the assessment under s. 143(3) r/w s. 143(2)(b) on 27th June, 1990, bringing the amount of Rs. 81,728 to tax as income under the head 'Other sources'. Subsequently the AO invoked the rectification proceedings under s. 154 of the Act and held that w.e.f. 1st April, 1987, a new s. 115BB has been inserted in the Act for taxing such winnings from lotteries at a....

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....the decision of the Kerala High Court in the case of K.C. Suresh vs. Director of Lotteries (1992) 103 CTR (Ker) 289 : (1993) 199 ITR 266 (Ker) wherein it is held that winnings from lotteries in kind are also to be considered as income holding that the definition of 'income' included not only money payment but also the value of any benefit or perquisite whether convertible into money or not. It was also noticed by the AO that the assessee purchased a Deluxe Maruti car costing Rs. 1,14,833.60 instead of the lucky prize of ordinary Maruti car costing Rs. 81,828.30. The difference in the prize of Rs. 33,105.30 was paid by the assessee. Therefore, the value of the lucky prize has been converted into money's worth and handed over to the assessee.....