JYOTI SEN Vs. THE COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal was admitted on the following question of law as formulated by an order dated 18th May, 2006 by the Division Bench.

(2.) The factual aspect of the case is that the assessee/appellant filed returns in relation to assessment year 2003-04 showing his deduction which includes income from abroad, namely, from Royal Government of Bhutan which is the source of income from winning the first prize in the lottery. After the same was filed, the department concerned issued an intimation disallowing the deduction. Pursuant thereto, the appellant made an application under Section 154 of the Income Tax Act, 1961 for rectification. However, this application was not allowed by the assessing officer. Thereafter, appeals were taken to Commissioner of Income Tax (appeal) and the learned Tribunal successively and unsuccessfully.

(3.) It appears from the judgment and order of the learned Tribunal and also that of the Commissioner of Income Tax (appeal) that they have proceeded on the premise that final order of assessment has been passed and, as such, they have expressed opinion on the question of allowable deduction of payment made at the time of collecting the proceeds of the lottery ticket from Bhutan Government. According to the assessee, such amount of Rs. 30 lakh deducted by the lottery authority of Royal Government of Bhutan should be treated at par with the tax deducted at source taking into consideration Section 91 of the Act.