1969 (12) TMI 97

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....porated under the provisions of the Companies Act, 1956, and is a producer of films. The assessee was entrusted with the work of producing the Hindi version of a Telugu picture Bharya Bhartalu and such entrustment was under a written agreement between the assessee and Messrs Pepee Films (hereinafter referred to as the producer) dated 4th May, 1961. The main features of the agreement may be noted. ....

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.... rendered by the assessee are attempted to be brought to tax on the ground that the agreement in question is essentially projecting a sale of the finished film to the producer. The Tribunal came to the conclusion that the contract reflected only a service agreement and not a sale as is popularly understood.   It is well-known that the insignia of ownership in a censored film fit for exhibi....