2012 (7) TMI 991

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rated on 2-6-2004. It is a private limited company and commenced business w.e.f. 1-12-2004, The company carried recorded music business by exploiting the music and video rights in audio and video softwares viz. Audio Cassets, Audio compact discs, video compact discs, digital downloads, ring tones, broadcasting and various other forms of exploitation. The company has its registered office located in Mumbai and regional sales offices located in Mumbai, Bangalore, Kolkatta and New Delhi. The return was filed showing a loss of Rs. 3,41,12,060/- inter alia claiming deduction of provision for stock obsolescence written back Rs. 1,13,91,166/-. However, the A.O. without considering the said claim completed the assessment at a loss at Rs. 2,23,72....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ook over stock of music records including the stock obsolescence of Rs. 2,94,99,126/-. In the books of the assessee as at 31-3-2005, the provision for stock obsolescence required was determined at Rs. 1,80,98,960/-. Accordingly, the provision for stock obsolescence of Rs. 1,13,91,166/- (Rs. 2,94,90,126/- minus Rs. 1,80,98,960/-) was written back in the books of accounts as the provision was no longer required. He further submits that since the provision was already disallowed and added back by Sony Music Entertainment (India) Pvt. Ltd. in its return for the A.Y. 2005-06 amounting to Rs. 1,30,41,027/-, hence it cannot be chargeable to tax in the hands of the assessee again in the year under appeal. In support he refers to the relevant pages ....