GOVINDA DEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE relevant facts giving rise to the filing of this writ petition are that the petitioner had won a lottery of Rs. 2,00,000, result of which was declared on 22nd Jan., 1992, under the scheme 'Sahara Golden Key' run by the Sahara India. The prize money was paid to the petitioner in February, 1992, i.e., before 31st March, 1992, which would mean the financial year 1991 -92 and the asst. yr. 1992 -93. The petitioner in her return for the asst. yr. 1992 -93 disclosed the receipt of the prize money and also paid the tax due on it. The assessment order for the asst. yr. 1992 -93 was passed on 20th March, 2002.

(2.) IT appears that the AO, on some misconception thought that as the petitioner has won the lottery in January, 1992, the receipt of the prize money would form part of the asst. yr. 1991 -92. The assessing authority passed ex parte assessment order for the asst. yr. 1991 -92 and included the amount of prize money won by the petitioner in the lottery result dt. 22nd Jan., 1992, and accordingly, raised the demand, vide order dt. 3rd Feb., 1999. The assessing authority further passed an ex parte penalty order on 30th Aug., 1999, under Section 271(1)(c) of the IT Act, 1961 (hereinafter referred to as 'the Act'), for the asst. yr. 1991 -92 on the ground of concealment of the income received by the petitioner on account of winning the lottery.

(3.) HEARD Sri S.D. Singh, learned Counsel for the petitioner, and Sri A.N. Mahajan, learned standing counsel representing the Department of IT.