KAILASH NATH GUPTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE present reference relates to the assessment year 1972-73. In the said order of assessment, the assessee was shown as an individual and, besides dealing in purchase and sale of Mainpuri tobacco, the assessee also used to earn commission income on sale of lottery tickets. Admittedly, no account has been maintained by the assessee. For the year in dispute, the accounting period ended on March 31, 1972. On the lottery tickets sold by the assessee, he earned bonus of Rs. 60,000. Accordingly, a letter dated March 30, 1971, was received by the assessee from the Deputy Director, Lotteries, U.P., Lucknow, requiring him to appear before him on April 1, 1971 and collect bonus money. Admittedly, the bonus money was collected by the assessee after April 1, 1971. In this reference, it is not in dispute that, in so far as the commission on sale of lottery tickets is concerned, the assessee is liable to be taxed. THE dispute between the parties in this reference centres round the payment of bonus money. Accordingly, in this reference, the following two questions of law have been referred :

(2.) WE have heard Shri Vikram Gulati, learned counsel for the assessee. His submission is that although the commission on sale of lottery tickets may be taxable, yet, it could not be contemplated on the sale of lottery tickets itself that such a ticket will also earn bonus.