1969 (12) TMI 97

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..... panies 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. The production of the picture being of .....

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..... 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 exhibition lies in the person who has the right to ex .....

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..... d in accordance with the terms of the agreement. The Tribunal, in our view, came to the right conclusion that in essence the agreement in question reflected only a service agreement between the parties. It is common ground that the agreement is genuine. In these circumstances, we are unable to agree with the contention of the learned Assistant Government Pleader that the agreement in question effe .....

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