Assessee, entered into three agreements with third parties for conferring on them distribution rights of film ‘Love Birds’. Search was conducted in business and residential premises of assessee and on basis of search report, proceedings under section 158BC read with section 158BD were initiated against assessee firm and they were called upon to file their return for block period in question.  It was noticed that part of amounts derived from agreements were shown for regular assessment, and in respect of balance amounts not received as per agreements, it was not shown and offered for assessment-.Assessing Officer noticed that balance amount was not offered for tax and hence he was of view that it was an undisclosed income for block period.  Assessee stated that it did not receive balance amount as it had been waived as movie failed at box office and hence, it should not be treated as a concealed income and it did not warrant initiation of proceedings under section 158BC read with section 158BD. Court held that agreements that had been entered into by assessee with distributors clearly indicated that same had nothing to do with flop of film at box office or otherwise. Moreover, Tribunal on examination of ledger accounts seized during search had come to a definite conclusion that assessee had already received entire amount from distributors much before release of film and therefore question of waiver would not arise. Order of Tribunal was affirmed. (BP 1-4-1987 to 17-3-1997)