TMI Blog1987 (12) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... verse circumstances in which respondent was obliged to part with the incomplete film. In such circumstances, it is difficult to hold that the sale of the film was a part of the business of the respondent and the sale in respect of this solitary transaction would be exigible to tax. - Civil Appeal No. 408 of 1975, - - - Dated:- 2-12-1987 - RANGANATH MISRA AND OZA G.L. JJ. R. Mohan, Advocate, for the appellant. T.A. Ramachandran, Senior Advocate (Mrs. Janaki Ramachandran and H.K. Dutt, Advocates, with him), for the respondent. -------------------------------------------------- The judgment of the Court was delivered by RANGANATH MISRA, J.- This appeal by special leave is directed against the judgment of a Divisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al value of the unfinished film for the unfinished film may not have any value at all unless the picture is completed. That is why the transferees had specifically bargained for the transfer of all the rights in the picture. Therefore, we are inclined to construe the agreement as one enabling the transferee to complete the unfinished picture at its cost on condition of its paying all the expenses incurred so far by the assessee as a transferor for producing the unfinished film. It is not possible to construe this agreement as a pure sale of the unfinished film. We therefore agree with the conclusion of the Tribunal that the agreement cannot be construed as a sale of goods, though for a different reason." The High Court, however, took the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al as also the High Court were wrong in adopting the contrary approach. There is, however, another aspect which though not raised cannot be overlooked. Since a revision lay to the High Court against the Tribunal's decision and all legal questions were tenable, we are prepared to entertain the argument in this appeal before us raising the other question on the facts found. The respondent was a dealer in publicity material, the original order of assessment clearly shows that. In the revised order, the assessing officer has described the respondent's business to be film production, obviously to suit his finding that he had during the year sold an incomplete film to an outsider. The record clearly shows that this was the single transaction of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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