TMI Blog2005 (1) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... y one issue, i.e., denial of deduction by the Revenue authorities under section 80RR of the Income-tax Act in respect of income of Rs. 2,67,150. The facts, briefly stated, are that the assessee is a music director by profession, produces music primarily for Hindi films. Apart from the above activity, the assessee also receives royalty as well as income from music shows conducted abroad. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee entered into an agreement to perform music show abroad and this agreement was executed during the normal course of carrying on the profession of the assessee. The assessee was willing and prepared to perform the show and he had already set apart his time for this activity. However, for no fault of the assessee, the music show was cancelled by the organizers as they faced some difficulties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Departmental Representative strongly supported the orders of the Revenue authorities and invited our attention to the provisions of section 80RR, 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from music shows performed abroad. There is no dispute about the fact that the income derived by the assessee from performing such shows is eligible for deduction under section 80RR. The assessee enters into a contractual agreement for such music show and part of the royalty income is paid by way of advance. The moot question is that if any music show is cancelled by the organizers, whether the ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee would be eligible for deduction under section 80RR. In the present case, the assessee entered into an agreement during the course of exercise of his profession. The income received by the assessee by way of advance directly flows from the exercise of this profession. Merely because, on account of no fault on the part of the assessee, the organizers cancelled the music show, it cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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