1981 (8) TMI 127

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....section 80TT of the Income-tax Act, 1961 ('the Act'). 2. The assessee is an individual who deposited a sum of Rs. 25 on 9-12-1975, with the Tanjore Permanent Bank Ltd. That bank which was celebrating its Platinum Jubilee, conducted a prize scheme in respect of the deposits received on the occasion. At the second draw held on 19-6-1976, the assessee won the first prize of Rs. 10,000. While adding ....

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....is appeal the contention of the revenue is that in a lottery there is an element of risk, in that the sum staked may be lost, whereas in the present case the assessee had not staked anything since his deposits had to be returned safe with interest, whether he drew the lot or not. But this contention ignores the fact that the assessee obtained the prize by a lot. Section 80TT allows the deduction i....

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....are paid circuitously from the interest earned on the subscribers, contributions or are paid directly from those contributions". In the circumstances, it is not possible to agree with the contention of the revenue that the prize received by the assessee could not be regarded as winnings from a lottery as contended by the assessee. It follows that the AAC was right in allowing the deduction under s....