In this case it has been held by the Hon’ble High Court that the contention of the assessee that it did not receive entire amount as part of it had been waived as movie failed at box office is contrary to the fact as the assessee had already received entire amount from distributors much before release of film. Hence, addition of balance amount as undisclosed income under section 158BC is justified. (BP 1-4-1987to 17-3-1997)
Pyramid Films International v.Dy.CIT(Inv.) (2022) 211 DTR 137 (Mad) (HC)
S. 158BD: Block assessment – Undisclosed income of any other person – Agreements with the distributors conferring distribution rights of film – Entire amount received prior to release of the film – Entire amount is liable to be offered for tax. [S. 158BC]