ADDITIONAL COMMISSIONER OF INCOME TAX Vs. SHAMSUNDAR L

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Bangalore Bench, Bangalore, has referred the following question for the opinion of this court :

(2.) THE matter relates to the assessment for the assessment year 1971-72, previous year being the one ended March 31, 1971. THE assessee is a partner of a firm which is engaged in the business of book-makers in connection which horse racing. He returned an income of Rs. 38,197 being his share of income from the said firm. In Part IV of his return, he had shown a sum of Rs. 3,27,111 for the relevant year as representing net race amount on the ground that it was a casual and non-recurring receipt coming within the purview of s. 10(3) of the I.T. Act, 1961 (hereinafter referred to as "the Act"). THE ITO accepted the claim of the assessee and concluded the assessment.

(3.) AS a sequel to this, an amendment was introduced to s. 10(3)(ii) of the Act also. Earlier to the amendment, the sub-section opened with the words "any receipts which are of a casual and non-recurring nature unless they are..." By virtue of the amendment, the main part of the sub-section reads as follows :