Decided on April 29,2008



N.V. Vasudevan, J.M. - (1.) THESE are appeals by the Revenue against a common order dated 31.03.05 of CIT (A)-XVII, Mumbai, relating to assessment years 1999-2000 and 2000-2001.
(2.) The only common issue that arises for consideration in these appeals is as to whether the Assessee is entitled to claim, deduction Under Section 80RR of the Act. The facts and circumstances relevant for adjudication 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 Section 88 of the Act. During the P.Y. relevant to assessment years 1999-2000, she entered into an Agreement, which is not dated but signed, on 27.05.98 with M/s. SET Satellite (Singapore) Private Limited, (herein after referred to as "SET") to provide Advertising and Marketing Services for all SET's products and services. The services undertaken to be provided by the Assessee to SET are as follows: 2.1 Making a study of the products and services in the markets in which Client operates and assessing with Client, these markets in regard to advertising, promotions and marketing. 2.2 Planning, preparing and supervising, in all cases as necessary, display and other sales promotion material, activities and product publicity requested by Client. 2.3 Planning and commissioning on Client's behalf any research activities or studies the Client may require, and analyzing such studies. 2.4 Liaison such as may be required with the international Agency of the Client and other Associates, appointed agents and third parties as may be advised from time to time by the Client. 2.5 Creating multimedia advertising requirements for the Client and its programming. 2.6 Creating specialized and innovative graphic inputs for promotional merchandising, leaflets, brochures, invitations and packaging. 2.7 All artworks, at the cost of the Agency, relating to 2.5 and 2.6 above. 2.8 Helping evolve a style for Sony Entertainment Television, a predominantly Hindi language entertainment channel being broadcast by the Client look through creating programme spots, interstitials and channel I.D.'s. It can be seen that Clause 2.5 to 2.8 of the Agreement contemplates the Assessee having to create innovative graphics. The cost of creating such graphics will be that of the Assessee. Under Clause 8 of the Agreement the intellectual property rights in the graphics created would Vest with SET. Under Clause 5.2 of the Agreement all costs other than cost of creating graphics are to be borne by SET.
(3.) CLAUSE 5.1 to 5.3 regarding remuneration payable to the Assessee reads as follows:;

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