The second appellant was appointed by the Society to be its lawful attorney in India by virtue of a power of attorney granted by the Society to the, second appellant in July, 1967.
The appeals taken by Vernon and Company against the supplementary assessment orders for the aforesaid years were dismissed by the Appellate Assistant Commissioner, Madras.
The second appellant, M s. Natsin India Private Limited is a private limited companypany incorporated under the Indian Companies .Act having its office at 26, Chowringhee Road, Calcutta.
The matter rested there and the Society had been paying tax on its income in India including the income from royal ties.
Appeal by Special Leave from the Judgment and Order dated 24 9 1973 of the Calcutta High Court in Appeal from Original Order No.
Later, the .Income tax Officer, Madras, issued numberices under section 34 1 of the Income Tax Act, 1922 and assessed the said income after deducting the proportionate administrative ex penses.
In the said assessment year also the Income tax Officer, Companies Circle L II , Madras by his order dated October 23, 1963 assessed the total income of the Society treating the income arising out of the agreement with the licensee as chargeable as was being done all these years.
A rule nisi was issued on the petition by a learned Judge of the High CoUrt but ultimately the rule was discharged and the petition was dis missed.
The Additional Commissioner of Income tax who dealt with the application dismissed the same by his order dated July 18, 1970.
Against this order of assessment, the Society through the second appel lant made a revisional application under section 264 of the Income Tax Act, 1961 hereinafter re ferred to as the Act to the Commissioner of In companye tax, West Bengal, where the Societys income tax file had been transferred in the meantime.
Prior to July, 1967 the Society, a number resident companypany, used to file its returns of income before the Income tax Officer, Madras, through its former agent in India, M s. Vernon and Company of Madras.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The agreement further provides that for the rights granted, the licensee will pay to the Society annually a sum calculated at the rate of 2 Two pounds per hour of broadcasting Western music from each of the licensees main and external Service Stations and that such annual payments must be made to the Society in London.
488 of 1975.
The royalties or fees realised from the licensee were number included in its returns for the assessment years 1947 48 to 1950 51.
Sen, S.K. Mehta, M. Qamaruddin and P.N. Puri, for respondent No.
Hardayal Hardy, for appellant No.
The agreement was executed in England.
It may be stated here that previous to this agreement the parties had entered into a similar agreement in the year 1940.
C. Manchanda, P.L. Juneja and S.P. Nayar, for respondents.
The agreement of 1953 states that the licence granted thereby shall be deemed to have companye into force on April 1, 1949 and shall companytinue from year to year until determined by either party giving to the other three calendar months numberice in writing to expire on March 31 in any year.
The agreement provides that the licensee shall send to the Society at its registered office in London, the lists of all musical works broadcast in each week during the term of the licence from each of the licensees main stations Delhi, Bombay, Calcutta and Madras and the external services, and requires the licen see to furnish a return after the first day of April every year during the period of licence, stating the agreegate number of hours occupied during the period ended on the previous 31st March, in broadcasting Western music from each of the licensees main and external Service Stations.
335/73 .
The Judgment of the Court was delivered by GUPTA, J. The first appellant, performing Right Society Limited, hereinafter called the Society is a companypany incorporated under the English Companies Acts, 1908 and 1913, having its registered office at Copyright House, 33 Margaret Street, Cavendish Square, London a companypany limited by guarantee and having numbershare capital.
The Society then moved a writ petition before the Calcutta High Court chal lenging the order of the Additional Commissioner of Income tax.
On December 13, 1953 the Society entered into an agreement with the President of India owning and companytrolling broadcasting stations in India and organizing and companyducting the same under the name of All India Radio hereinafter referred to as the licensee whereby the Society granted to the licen see the authority, a to broadcast from the licen sees sound broadcasting stations in India all musical works included in the repertoire of the Society, and b to utilize, solely, for the pur pose of sound broadcasting as aforesaid, any origi nating performance of such musical works, irrespec tive of the source of such performance and the means whereby the such performance is companyveyed to the point of broadcast transmission from the licen sees stations.
received from the licensee without objection until the assessment year 1967 68 for which the accounting year ended December 31, 1966.
