TaxTMI 
TaxTMI 
1992 (11) TMI 123
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....t has two systems for receiving bets from the punters. One is an enclosure called totalisator run by the assessee Club where punters can bet on horse racing. The other is an enclosure where private persons/parties are given licence by the assessee Club to receive bets on horse races from the punters. As per section 15 of the Bengal Amusements Tax Act, 1922 (hereafter for short 'BATA') there is a charge and levy of 20 per cent tax called 'totalisator tax' on bets made in the totalisator enclosure. Similarly, section 18 of the BATA there is a charge and levy of 20 per cent tax called "betting tax" on the bets made by the punters with the Licensed Bookmakers (hereafter for short 'LBMs'). The liability under section 15 of the BATA to pay and di....
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....ions and disallowances, first appeal was preferred before the Appellate Commissioner of Income-tax who agreed with the AO in respect of this addition of Rs. 77,44,592 under section 43B. The present appeal before us is, therefore. assailing this action of the Appellate Commissioner in agreeing with the AO. 6. Assessee's Counsel Shri R.N. Bajoria submitted that the AO erred in applying the provisions of section 43B and making the addition of Rs. 77,44,592 being the betting tax of the LBMs because the said sum was not betting tax payable by the assessee Club to the Government in respect of the bets received on totalisator. The liability for betting tax under BATA was that of the LBMs and the assessee Club only acted as an agent of the Gover....
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.... added under section 43B and the department had accepted that decision of the Appellate Commissioner and no second appeal was preferred to this Tribunal. It is also brought to our notice by Shri Bajoria that even for the two earlier assessment years 1985-86 & 1986-87, no addition was made under section 43B on the basis of the order of the Appellate Commissioner for the assessment year 1984-85. Therefore, according to Shri Bajoria, the finding of the Appellate Commissioner in the impugned order is erroneous and deserves to be corrected and addition deleted. 7. The Departmental Representative, on the other hand, relied on the order of the lower authorities and submitted that the addition was correctly made as the assessee Club failed to re....
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....ted 22-6-1988 from the Government of West Bengal, Finance Department, Taxation. Thus, the assessee Club only acted as a conduit pipe and the betting tax in its hands is not the tax payable by the assessee to the Government of West Bengal. Legally speaking, no sooner the betting tax is made over to the assessee Club for the purpose of remittance into the Govt. Treasury, it loses the character of being a betting tax and becomes money simple in the hands of the assessee Club like any other cash or money available with the assessee Club in respect of its other activities. Legally speaking, the betting tax in the hands of the assessee Club is the trust money to be paid over/remitted into the Govt. Treasury. In such a situation the provisions of ....