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In view of the specific provision contained in section BB of the Act under Chapter XII of the Act, which provides for determination of tax in certain special cases, the special rate of tax is applicable for the entire income of winnings from horse racing and should be subject to tax at the special rate provided therein. It is not the case of the assessee that the income being brought to tax is earned from owning and maintaining the horses. Therefore, in our considered opinion, the provisions of section 58 4 of the Act will not come into play.
If the circular relied on by the assessee is taken into consideration, then what is envisaged by the statute would be given a go-by and the purport and intent of the Parliament in enacting that special provision in the statute would become a futile exercise. Therefore, the reliance placed on the said circular by the Commissioner Appeals as also by the Tribunal is misconceived and does not stand legal scrutiny.
We are at a loss to understand as to how the Tribunal concurred with the decision of the Commissioner Appeals , while making a diametrically opposite observation that section 58 4 of the Act is not applicable. The order passed by the Tribunal, which affirmed the order of the Commissioner Appeals , is liable to be set aside. Accordingly, the order passed by the Tribunal is set aside.
User Menu. Income Tax Judiciary. Income from betting horse racing Taxability Net Vs. Login to rate this horse. Income Tax Photo Gallery. Date Horse Fin Tr Dist. Race Cnd 1st 2nd 3rd Time. Top Stories. Risen Star Odds and analysis The Grade 2. Keepmeinmind to stay at Oaklawn for Southwest Stakes Keepmeinmind will keep in place for his 3-year-old Oaklawn Park cancels weekend races due to severe weather Due to the predicted winter weather expected in Ho Analysis: Proxy could turn the table in Risen Star Stakes Most value bettors hope for a large and competitiv Best of the Blogs.
Mineshaft-bound Maxfield has been a study in patience They say patience is its own reward, but in the c What we learned: Withers the better of the two Derby preps Neither of the 3-year-old Kentucky Derby prep race