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TMI Blog2020 (1) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... f the writ petitioner assessee for the assessment year 2012-13 on the ground that income chargeable to tax had escaped assessment. According to the assessee, it carries on business of, inter alia, producing sound recordings of music and, for such purpose, it obtains assignment of the copyright from the first owners against royalty paid or payable upon exploitation of such rights. The assessee claims that a substantial part of the assessee's business is of issuing licence for its sound recordings to be played all over the country. According to the assessee, while such licence fees are charged and permission granted for the music to be played, it is difficult to immediately ascertain the persons to whom royalty would be payable or the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned by the assessee and the discrepancy between the purchase price shown in the assessee's books and the sale price recorded for the corresponding assets in the vendor's books have prompted the notice. As far as the second aspect is concerned, if it is as the assessee claims, there may not be any cause for worry since it is obvious that the excise duty and the tax paid for the transaction could not have been credited in the books of the vendor. An explanation in such regard may satisfy the assessing officer. However, as far as the provision for payment of royalty is concerned, the assessee claims that the accounts had been earlier furnished pursuant to a request in such regard made by the assessing officer. The assessee also refers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd recordings and the royalty paid or payable by the assessee in respect of the licence fees earned. As to the provision part of the accounts pertaining to royalty in respect of licence fees, there was a specific note in the accounts and schedule 28 to the accounts was quite clear. If the accounts were before the assessing officer and several queries were raised pertaining even to the royalty and matters connected therewith, it is difficult to accept that the additional income representing the excess of the amount earmarked as provision and the amount actually paid out would not have been noticed. If such matter had been noticed, as it ought to have been, and disregarded, the issuance of the impugned notice would amount to a change of opi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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