20,000 by the Indian Oil Corporation and another Sum of Rs.
The companypetitor with the least penalty points was adjudged the first prize winner.
An appeal preferred by the Revenue was dismissed by the Tribunal.
One companyld start either from Delhi, Calcutta, Madras or Bombay, proceed anti clock wise and arrive at the starting point.
The Income Tax Officer included the same in the income of the respon dent assessee relying upon the definition of income in clause 24 of section 2.
The method of ascertaining the first prize was based on a system of penalty points for various violations.
He was awarded the first prize of Rs.
2,000 by the All India Highway Motor Rally.
One had to drive his vehicle observing the traffic regulations at different places as also the regulations prescribed by the Rally Committee.
From the Judgment and Order dated 20.11.1979 of the Madras High Court in Tax Case No.
In other words the said receipt does number represent winnings.
Prizes were awarded on the basis of overall classification.
It was predominantly a test of skill and endurance as well as of reliability of the vehicle.
On appeal, the Appellate Assistant Commissioner held that inasmuch as the rally was number a race, the amount received cannot be treated as income within the meaning of section 2 24 ix .
The rally was number a race.
That the rally was also number a game within the meaning of section 2 24 ix .
The assessee, R. Karthikeyan, assessed as an individual, was having income from various sources including salary and business income.
The Rally was organised jointly by the Automobile Association of Eastern India and the Indian Oil Corporation and was supported by several Regional Automobile Associations as well as Federation of Indian Motor Sports Clubs and the Federation of Indian Automobile Associations.
The rally was designed to test endurance driving and the reliability of the automobiles.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Raghuvir and Ms. A. Subhashini for the Appellant.
3908 NT / 1983.
330 of 1976.
22.000 received by the assessee from the Indian Oil Corporation and All India Highway Motor Rally should number be brought to tax?
The question referred under section 256 1 of the Income tax Act reads as follows Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the total sum of Rs.
A. Ramachandran and Mrs. Janaki Ramachandran for the Respondent.
The assessment year companycerned is 1974 75.
The Judgment of the Court was delivered by P. JEEVAN REDDY, J. This appeal is preferred against the Judgment of the Madras High Court answering the question referred to it in the affirmative i.e., in favour of the assessee and against the Revenue.
The rally was restricted to private motorcars, the length of the rally route was approximately 6,956 kms.
During the accounting year relevant to the said assessment year, he participated in the All India Highway Motor Rally.
