1991 (3) TMI 175

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n State Lottery Rs. 2,00,000 Less: Local cess at 12% as per certificate Rs. 24,000 --------------------------------- Rs. 1,76,000 --------------------------------- Less: Expenses claimed: Travelling from A'bad to Jaipur by air with his advocate Rs. 3,000 3 days stay at Jaipur with his advocate and lodging & boarding expenses Rs. 1,000 Court expenses (affidavit), stamp, advocate fee etc. Rs. 1,000 --------------------------------- Rs. 5,000 --------------------------------- Allowed Rs. 3,000 --------------------------------- Rs. 1,73,000 Less deductions under section 80TT: Out of Rs. 1,73,000 on the first Rs. 5,000 100% Rs. 5,000 On the balance of Rs. 1,68,000 50% Rs. 84,00....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....expenses incurred in relation to travelling to Jaipur. It was submitted that the withdrawal of the expenditure aggregating to Rs. 27,000 is clearly beyond the scope of section 154 of Income-tax Act, 1961. 6. The learned DR contended that the local cess of Rs. 24,000 deducted by the Rajasthan State Lottery authorities is like professional tax deducted from salary in the State of Gujarat. Such deduction of local cess cannot be allowed as an expenditure. Similarly the deduction of Rs. 3000 allowed by the ITO for other expenses beyond the deduction permissible under section 80TT was a mistake apparent from record. He supported the order of the CIT(A) as well as the ITO withdrawing the said expenditure aggregating to Rs. 27,000. 7. We have....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of original assessment cannot be said to be a mistake. The income by way of any winnings from lottery is chargeable under the head 'Income from other sources' under section 56(2)(ib) of Income-tax Act, 1961. Section 57(iii) provides that income chargeable under the head 'Income from other sources' shall be computed after making deduction in respect of any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of making or earning such income. The provisions of section 80TT nowhere prohibits grant of deduction of such expenditure, which is apparently allwable under section 57(iii). It cannot therefore be validly contended that deduction in respect of such expenditure who....