LOPAMUDRA MISRA Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The prize money of Rs.25,00,000/- (rupees twenty-five lakhs), which the petitioner-Lopamudra Misra got by exhibiting her talent in a TV Game Show, i.e., "Kaun Banega Crorepati" having been made taxable by the Income Tax Authorities, she has approached this Court by means of this writ petition praying for quashing of order dated 04.11.2009 (Annexure-1) and directing the Assessing Officer to refund the entireadvance tax of Rs.7,55,550/- along with interest as provided under First Part of Section 140 of the Income Tax Act, 1961( for short, "Act") .

(2.) Bereft of unnecessary details, the facts and circumstances giving rise to the present writ petition are that the petitioner-assessee is an individual deriving income from running a Cyber Caf -cum-Computer Coaching Centre. She filed return of income showing total income Rs.16,21,630/- for the assessment year 2001-02. In her return, the assessee disclosed income from household property, business and other sources. The same was processed under Section 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny and accordingly notice under Section 142 of the Act was served on her. In course of hearing of the assessment case, the assessee was asked to submit her clarification as to why the award of Rs.25.00 lakhs from the said TV game show shall not be taxed under Section 115BB of the Act. The contention of the assessee before the Assessing Officer was that the award of Rs.25.0 lakhs received by her was not taxable under the Act. Rejecting assessee's explanation, the Assessing Officer completed the assessment under Section 143(3) of the Act holding that the award received from the said TV game show was taxable under Section 115BB of the Act.

(3.) Aggrieved by the assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) [for short, 'CIT(A')] on the ground that the Assessing Officer was not justified in applying the provision of Section 115BB of the Act as amendment to Section 2(24)(ix) where an explanation was added vide Explanation (ii) Finance Act, 2001 came into effect only on 01.04.2002 for the first time "brining the receipt from TV game show" within the definition of "income". Therefore, the assessee having received the award on 05.11.2000, provisions of Section 115BB and Explanation (ii) to Section 2(24)(ix) of the Act, which came into effect only by the Finance Act, 2001 with effect from 01.04.2002, cannot be made applicable with retrospective effect. Learned CIT(A) accepted the stand of the assessee taken in respect of the amendment of Section 2(24(ix) of the Act and introduction of explanation (ii) as well as inapplicability of Section 115BB of the Act to the fact situation. However, learned CIT(A) held that receipt of the award from the said TV game show by the assessee is assessable under the head "income from other sources" and directed the Assessing Officer to determine the quantum of income afresh allowing expenses incurred from such income after affording an opportunity of hearing to the assessee.