IN THE HIGH COURT OF DELHI AT NEW DELHI 
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         ITA 128/2008  
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 COMMISSIONER OF INCOME TAX                          ..... Appellant 
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 Through Ms.Premlata Bansal, Advocate. 
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 versus 
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 DELHI RACE CLUB LTD                         ..... Respondent 
 Through None. 
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 CORAM: 
 HON'BLE MR. JUSTICE MADAN B. LOKUR 
 HON'BLE MR. JUSTICE V.B. GUPTA 
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 O R D E R 
                        28.02.2008 
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 Two issues have been raised in this Appeal. 
 The first issue pertains to the interpretation of Section 194BB read with 
 Section 10 (3) of the Income Tax Act, 1961. 
 Issue notice to the Respondent in respect of the first issue, returnable 
 on 14th August, 2008. 
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 ITA 128/2008                                                        page 1 of 3 
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 The second issue that has been raised is whether the Tribunal was correct 
 in holding that the Assessee was entitled to deduct the investment made by a 
 person who places a bet in a horse race and earns some income as a result of 
 that bet. 
 The procedure that is followed by the Assessee is that out of the 
 winnings of the punter the investment made by him towards the bet is deducted 
 and on the actual winnings, tax is deducted at source. 
 According to learned counsel for the Revenue, tax should be deducted at 
 source by the Assessee on the entire amount including the investment or the 
 money spent by the punter for making the bet. 
 In our opinion this is not the correct way of interpreting the law 
 relating to deduction of tax at source.  It is tax on the winnings that ought to 
 be deducted, as has rightly been held by the Tribunal.  The total prize money 
 includes the investment made by the punter and tax cannot be deducted at source 
 on the investment made by him. 
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 ITA 128/2008                                                        page 2 of 3 
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 As far as the second issue is concerned we find that no substantial 
 question of law arises.  Dismissed. 
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 MADAN B. LOKUR, J 
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 V.B. GUPTA, J 
 FEBRUARY  28, 2008 
 Bp 
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 ITA 128/2008                                                        page 3 of 3 
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