COMMISSIONER OF INCOME TAX, MADRAS vs G.R. KARTHIKEYAN, COIMBATORE

The Supreme Court held that the prize money of Rs. 22,000 received by the respondent for winning an All India Highway Motor Car Rally constitutes 'income' under Section 2(24) of the Income Tax Act, 1961. The Court clarified that the definition of 'income' is inclusive and should be interpreted broadly, rejecting the High Court's view that the prize money was not 'winnings' as it was not derived from gambling. The Court emphasized that earnings from skill-based contests also qualify as income, thereby allowing the Revenue's appeal and including the prize money in the assessee's income for tax purposes.