TMI Blog2008 (4) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... of these appeals are as follows. The assessee is an individual. The assessee is a creative commercial artist and designer. She has been rendering services as commercial artist and designer in the past in the name of her proprietary business "Vyas Giannetiti Creative". She has been declaring income from rendering service to tax. She has also been availing the benefit of rebate available to an artist, under proviso to s. 88 of the Act. 3. During the previous year relevant to asst. yrs. 1999-2000, she entered into an agreement, which is not dated but signed, on 27th May, 1998 with M/s SET Satellite (Singapore) (P) Ltd. (hereinafter referred to as "SET") to provide advertising and marketing services for all SET's products and services. The s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntellectual property rights in the graphics created would vest with SET. Under cl. 5.2 of the agreement all costs other than cost of creating graphics are to be borne by SET. 4. Clauses 5.1 to 5.3 regarding remuneration payable to the assessee reads as follows: "5.1 In consideration of the services referred to in cls. 2.1 to 2.8 rendered by the agency to the client, the client shall pay to the agency retainership fee of Rs. 52,00,000 (rupees fifty-two lakhs only) per annum @ Rs. 4,33,333 (rupees four lakhs thirty three thousand three hundred thirty-three only) for every month for which the agency has rendered the services. The retainers hip fee stated herein is inclusive of withholding tax, income-tax and any other statutory levies wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r deduction under s. 80RR of the Act. The only dispute is as to whether the assessee can be said to have received the above remuneration as an "artist", which is a condition to be fulfilled for claiming deduction under s. 80RR of the Act. There is no dispute regarding fulfillment of other conditions contemplated by s. 80RR of the Act. Sec. 80RR of the Act provides as follows: "Where the gross total income of an individual resident in India, being an author, playwright, artist, musician, actor or sportsman (including an athlete), includes any income derived by him in the exercise of his profession from the Government of a foreign State or any person not resident in India, (there shall be allowed, in computing the total income of the indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. On the appeal by the assessee the learned CIT(A) held that the assessee was an artist and was entitled to claim deduction under s. 80RR of the Act. Hence, these appeals by the Revenue before the Tribunal. 8. We have heard the submissions of the learned Departmental Representative who relied on the order of the AO. The learned counsel for the assessee relied on the order of CIT(A) and submissions made before the learned CIT(A). 9. We have considered the rival submissions. The assessee has completed a 5-1/2 year diploma course in visual communication with specialization in graphics from the National Institute of Design, Ahmedabad as early as 18th Dec., 1980. She is a well renowned professional and one of the top ten creative direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns, and layout of the artwork and thereafter put it in a graphic form. A commercial artist is a professional. The skill possessed by such person when used in the course of his profession makes him an artist. Not all work done by such artist can be termed as artistic work. That which involves creativity and which ultimately results in a creation can be said to be artistic work. The work done by the assessee in the present case especially in pursuance of cls. 2.5 to 2.8 of the agreement involves creativity and can be said to be work done in the capacity of an artist. The remuneration received by the assessee is only in connection with services rendered with reference to cls. 2.5 to 2.8 of the agreement. The services referred to in cls. 2.1 to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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