TaxTMI 
TaxTMI 
1993 (4) TMI 9
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.... participated in the All India Highway Motor Rally. He was awarded the first prize of Rs. 20,000 by the Indian Oil Corporation and another sum of Rs. 2,000 by the All India Highway Motor Rally. The rally was organised jointly by the Automobile Association of Eastern India and the Indian Oil Corporation and was supported by several regional automobile associations as well as the Federation of. Indian Motor Sports Clubs and the Federation of Indian Automobile Associations. The rally was restricted to private motor cars. The length of the rally route was approximately 6,956 kms. One could start either from Delhi, Calcutta, Madras or Bombay, proceed anti-clockwise and arrive at the starting point. The rally was designed to test endurance driving and the reliability of the automobiles. One had to drive one's vehicle observing the traffic regulations at different places as also the regulations prescribed by the Rally Committee. Prizes were awarded on the basis of overall classification. The method of ascertaining the first prize was based on a system of penalty points for various violations. The competitor with the least penalty points was adjudged the first prize winner. On the above ba....
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....ssword puzzles, races including horse races, card games, etc. The correctness of the view taken by the High Court is questioned herein. The definition of " income " in section 2(24) is an inclusive definition. Parliament has been adding to the definition by adding sub-clause(s) from time to time. Sub-clause (ix), which was inserted by the Finance Act, 1972, reads as follows : " (ix) any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever ; " We may notice at this stage a provision in section 10. Section 10 occurs in Chapter III which carries the heading " Incomes which do not form part of total income". Section 10 in so far as is relevant reads thus " 10. Incomes not included in total income. - In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included - . . . (3) any receipts which are of a casual and non-recurring nature, not being winnings from lotteries, to the extent such receipts do not exceed one thousand rupees in the aggregate. " (The clause has been amend....
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.... the word 'income' as its natural meaning. The relevant observations of the learned judges deciding those cases which have been quoted in the judgment of Tendolkar quite clearly indicate that such wide meaning was put upon the word 'income' not because of any particular legislative practice either in the United States or in the Commonwealth of Australia but because such was the normal concept and connotation of the ordinary English word 'income'. Its natural meaning embraces any profit or gain which is actually received. This is in consonance with the observations of Lord Wright to which reference has already been made.... The argument founded on an assumed legislative practice being thus out of the way, there can be no difficulty in applying its natural and grammatical meaning to the ordinary English word 'income'. As already observed, the word should be given its widest connotation in view of the fact that it occurs in a legislative head conferring legislative power". Since the definition of " income " in section 2(24) is an inclusive one, its ambit, in our opinion, should be the 'same as that of the word income occurring in entry 82 of List I of the Seventh Schedule to the Co....
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....rom activities of a gambling or betting nature alone. Assuming that the High Court is right in its interpretation of the expression "winnings", does it follow that merely because winnings from gambling/betting activities are included within the ambit of income, the monies received from non-gambling and non-betting activities are not so included ? What is the implication flowing from the insertion of clause (ix) ? If the monies which are not earned - in the true sense of the word -constitute income why do monies earned by skill and toil not constitute income ? Would it not look odd, if one is to say that monies received from games and races of gambling nature represent income but not those received from games and races of non-gambling nature ? The rally in question was a contest, if not a race. The respondent-assessee entered the contest to win it and to win the first prize. What he got was a " return for his skill and endurance. Then why is it not income - which expression must be construed in its widest sense. Further, even if a receipt does not fall within sub-clause (ix), or for that matter, any of the sub-clauses in section 2(24), it may yet constitute income. To say otherwise ....