Set off provision against lottery income

This query is : Resolved

CA. Niranjan Kumar (Querist)
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15 April 2012 Sir,
while reading section 115BB i noticed that:-

a)No expenditure is allowed against Lottery income except the portion of income payable to Government.

b)Set off of losses is not allowed against Lottery income.

My doubt is that whether set off of unabsorbed depreciation against Lottery income is allowed or not?

Thank You
Niranjan

CA Prashant Gupta

CA Prashant Gupta (Expert)
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15 April 2012 In reading of bare section, it is seem as unabsorbed depreciation is allowed from any other income.

But we have to consider that The intention of statue is to tax lottery income at flat rate of taxation, hence in my view unabsorbed depreciation will not be allowed.

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)
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15 April 2012 Thank You sir for giving your view.
I have another issue:
A had accepted deposit from B in following order:
a) Cheque deposit Rs 10000
b) cash deposit Rs 11000

Receiving cash deposit of Rs 11000 is violation of section 269SS because aggregate deposit has crossed the allowable limit of Rs 19999 due to acceptance of cash deposit.

My doubt is whether penalty u/s 271D would be:
1. Rs 21000, or
2. Rs 11000, or
3. Rs 1001 (21000-19999)

Thank you once again