1984 (8) TMI 166

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....ry ticket and won the prize of Rs. one lakh. The ITO completed the assessment in the status of "AOP". While doing so, he rejected the contention of the assessee that the persons concerned should be assessed individually in respect of their respective winnings. 2. However, on appeal, the AAC accepted the claim of the assessee and held that the ITO was not justified in completing the assessment i....

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....or purchase of lottery tickets and winning the lottery prize, that they cannot be treated as "Association of Persons". The reason according to the Hon'ble Tribunal is that absolutely no activity of any kind is also involved in getting the prize amount which depends wholly on the stroke of luck. There is no need for any common management except by sheer luck. The mere fact that by a stroke of fortu....

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....h ITO, Circle-II, Salem vs. M/s A.U. Chandrasekaran & Ors., India Cement Ltd., Sankari ITA No. 1008/Mds/1978-79 and the same was decided against the Department. According to this decision of the Tribunal, the mere fact that two or more persons purchased a lottery ticket, which, by stock of luck, won the prize could not lead to the conclusion that the persons concerned associated together for carry....