SABYASACHI MUKHARJI, J.

( 1 ) WE are concerned in this reference with the assessment for the assessment year 1960-61. The relevant previous year ended on 30th September, 1959. The assessee is a company. The assessee carries on business of production and distribution of cinematograph films. During the year, the assessee produced and released for exhibition a film called "sagar Sangame". In respect of this film, the assessee had entered into an agreement with one Amar Das Mallick, a film producer, on 20th June, 1957. Under the agreement the assessee was to finance the production and to be the distributor of the film. The assessee had to finance a sum not exceeding Rs. 1,12,500 including Rs. 10,000 for acquiring the story rights, Rs. 25,000 for the director, Debaki Kumar Bose, and Rs. 5,000 to the music director, Sri Rai Chand Boral. The film was to be completed in six months and the assessee was to be the absolute owner thereof. The film was produced. It secured the President's award. The assessee had financed the production. Disputes arose between the said Amar Das Mallick and the assessee as to who was the producer of the film. The matter was referred to the arbitration of the Ben

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