ITAT Explains Meaning of Term ‘Lottery’ for Taxation & TDS deduction

Sri. Rajmohan V.V., Kumbalappalli Vs ITO (ITAT Cochin) Before a scheme can be regarded as a lottery, there must be the element of distribution of prizes which should be by chance or lot and such distribution should be among those who had paid a price for participating in the scheme. Mere gratuitous distribution without any price having been paid by the participants for acquiring the chance and receiving a prize that is ultimately distributed, would not amount to a lottery. That appears to be the reason why the Explanation was added under section 2(24)(ix), w.e.f. 1.4.2002, to bring within the ...