2005 (1) TMI 629

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...., the assessee also receives royalty as well as income from music shows conducted abroad. During the previous year relevant to the assessment year under appeal, the assessee, inter alia, received a sum of Rs. 2,67,150 in convertible foreign exchange by way of advance for the shows to be performed abroad. On account of certain problem faced by the organizers of this show, the arrangement was cancelled and as per the terms and conditions of the agreement, the aforesaid sum was forfeited by the assessee. The Assessing Officer held that since the assessee did not perform any shows abroad and thus he did not exercise his profession in earning the aforesaid income, deduction under section 80RR is not admissible. The learned Commissioner of Income....

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.... which are reproduced below : "80RR. Where the gross total income of an individual resident in India, being an author, playwright, artist, musician, actor or sports man (including an athlete), includes any income derived by him in the exercise of his profession from the Government of a foreign State or any person not resident in India, there shall be allowed, in computing the total income of the individual, a deduction from such income of an amount equal to--. . ." The learned Departmental Representative pointed out that the assessee becomes eligible for deduction only if any income is derived by him in the exercise of his profession. He submitted that in the present case the sum of Rs. 2,67,150 may be incidental to the assessee's profess....