(1.) THIS petitioner, a businessman, was lucky enough to win a sum of Rs. 26,755 in horse races during the accounting year 1972-73, but he was not lucky with the income-tax department. The Income-tax Officer, Nellore, added that amount to his other income for the assessment year 1973-74. Questioning the validity of that order the petitioner has filed this writ petition.
(2.) PRIOR to 1st April, 1972, winnings in horse races were not eligible to income-tax. By the Finance Act, 1972, Clause (ix) was added to Section 2(24) of the Income-tax Act, 1961, which defines "income". Now, according to Section 2(24)(ix) of the Income-tax Act, income includes any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or from gambling or betting of any form or nature whatsoever.
(3.) UNDER article 246 of the Constitution, Parliament has exclusive power to make laws with respect to any of the matters enumerated in List I in the Seventh Schedule, referred to as the Union List.