JUDGMENT - Chagla, C.J.

1. The only question that arises on this reference is whether the assessees income falls to be computed under Section 7 or Section 10, Income-tax Act. The assessee Mrs. Durga Khote is admittedly a well-known film actress. In the year of account which is 1944 she entered into various contracts for serving with several film companies and the contracts wore to the effect that her services were lent for the purposes of acting in different films at a certain remuneration fixed in the contracts. The contention of the Department was that her income represented "salaries" paid by the various film companies and she should show her ret am under Section 7 and not under Section 10. On the other hand, the contention of the assessee was that her income arose out of the practice of her profession, which was that of a film actress, and therefore, her return was rightly shown under Section 10. The Tribunal upheld the contention of the assessee.

2. Mr. Joshis contention is that if you look at the terms of the contracts, it is clear that a relationship of master and servant is established between the film companies and the assessee, and according to him if that relationship is

Click Here to Read the rest of this document