2009 (1) TMI 886

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....Counsel Heard learned counsel for the Revenue. Inspite of notice nobody has appeared on behalf of the assessee. On an application u/s 256 (2) of the Income Tax Act (the Act) as it existed prior to the National Tax Tribunal Act, 2005, this court formulated the question of law and directed the Income Tax Tribunal, Patna Bench, Patna to state the case to this court for its opinion. Accordingly ....

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.... expenses of Rs. 1,05,717/-. The assessing officer allowed the expenses to the extent of 50% of the royalty income and completed the assessment u/s 143 (3) of the Act. The Commissioner Income Tax (CIT), Patna in course of examination of assessments in the light of provisions of Section 263 of the Act noticed that royalty amount in the hands of the assessee was on account of gift of copyright of....

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....as shown and it was pointed out that gift by the father of the assessee was not of a particular royalty amount but was of the copyright of the book. It was further shown that in order to earn royalty income from such copyright, certain acts like revising the book, taking care of its popularity and marketing are required and hence in absence of books of account and vouchers only 50% of the royalty ....

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....een allowed by order dated 17.3.1987 out of which the reference and Tax case has arisen. The Tribunal on consideration of materials and letters considered by the Assessing Officer has came to the opinion that an enquiry had been held in respect of claim of the assessee and on facts the Tribunal was satisfied that there was no irregularity or illegality in the order of Assessing Officer on the g....