JASWANT KAUR SEHGAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These appeals arise out of the common judgment and order dated 12.5.97, passed in the aforementioned Civil Rules. The factual setting for all the writ petitions is the same and as common questions of law based thereon had arisen for adjudication, the appeals were heard together and are disposed of by this common judgment and order.

(2.) We have heard Mr. G K Joshi, Sr. Advocate assisted by Mr. RKJoshi and Mrs. U. Chakravarty Advocate for the Appellants/ Writ Petitioners and Dr. AK Saraf, Sr. Advocate assisted by Ms N. Agarwal, Advocate for the Respondent/Revenue.

(3.) Briefly stated, the facts necessary to be taken note of for comprehending the competing arguments of the parties are that the appellants/writ petitioners are residents of Thangal Bazar, Imphal in the State ofManipur and are existing asscessees under the Income Tax Act, 1961, (hereafter referred to as the Act.), enjoying income from house property, share of profit from their respective firms as well as from interest. During the year 1983- 84, relevant to assessment year 1984-85, the appellants along with four other persons residing at 4 Achambit Show Road, Calcutta in the State of West Bengal, jointly purchased a lottery ticket of Rs. 51- bearing No. B- 71627 of the 1 st Diamond Lottery conducted by the Directorate of State Lotteries, Govt. of Nagaland, which own the first prize of Rs. 1 Crore in the draw held on 31.10.83. The purchasers having equal shares in the ticket claimed their respective 1 /8th share from the amount of Rs. 90,000/- after deduction of 10% commission. Their claim, according to the appellants were registered separately with the Govt. of Nagaland, which was accepted and payment of 1 /8th share was made to each purchaser separately by Account Payee Bank Draft after deducting income tax at source under the provisions of the Act. Resultantly each purchaser received an amount of Rs. 7,53,750/- after deduction of Rs. 3,71,250/- by way of income tax at source from the amount of Rs. 11,25,000/- being the l/8th share of the available prize money. The appellants claim that the Govt. of Nagaland, consequently, also issued certificate of deduction of income tax at source certifying that a sum of Rs. 3,71,250/- being the income tax @ 30% and surcharge @ 3% had been deducted from Rs. 11,25,000/- from each purchaser. That the tax deducted at source was credited to the corresponding Income Tax head on 28.1.84 was also certified and certificates to the said effect was issued to each of the purchasers separately.