K THAYAT ALIAS KUNJANATHAN Vs. CTI

JUDGEMENT

(1.) THIS is a reference at the instance of the assessee by the Income-tax Appellate Tribunal, Madras Bench, under S. 256 (1) of the income-tax Act, 1961, The assessment year concerned is 1959-60; and the accounting period, the twelve months ended on the 31st March 1959. The questions referred are: (1) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the time taken by the assessee to write the book would not be more than twelve months, within the meaning of s. 12aa of the Income-tax Act, 1922? (2) Whether on the facts and in the circumstances of the case, the Tribunal was right in permitting the Department to raise the contention that the income of the assessee did not fall under S. 12aa of the income-tax Act, 1922? (3) If the answer to question No. (1) is in the affirmative, whether the Appellate Tribunal was right in holding that the provisions of S. 12aa of the Act did not apply and that the income of the assessee was income from business? (4) Whether the Tribunal was right in holding that the income of the assessee was not a causal or non recurring income?

(2.) THE assessee is the author of a book entitled "oru Kuttiyute Atmakatha" THE book, we are told, is an adaptation in malayalam of David Copper field.

(3.) IT is common ground that if we come to the conclusion that the agreement does not spell an assignment of any interest in the copyright of the book, questions (1), (2) and (3) have to be answered against the assessee and in favour of the Department. The main point for determination, therefore, is whether the agreement does or does not involve an assignment of any interest in the copyright of the book as contended by the assessee.