Contract interpretation excluded part payments for ongoing pictures, and Section 145(2) proviso was held inapplicable.

The expression "entire consideration" and the term "gross receipts" in the agreement were read as confined to completed pictures, excluding part payments received for ongoing pictures. The Court also held, on the same factual setting, that the proviso to Section 145(2) of the Income-tax Act, 1961 did not apply. Because the referred questions were substantially identical to those already decided in the assessee's own case for another assessment year, the earlier interpretation was followed and the questions were answered in favour of the assessee and against the Revenue.

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Issues: Whether the expression "entire consideration" and the term "gross receipts" in the agreement were to be confined to completed pictures and exclude part payments received for ongoing pictures, and whether the proviso to sub-section (2) of Section 145 of the Income-tax Act, 1961 applied to the facts of the case.

Analysis: The questions referred were substantially identical to those already considered by the same Court in the assessee's own case for another assessment year. The earlier decision had accepted the assessee's construction of the agreement and had also negatived the application of the proviso to sub-section (2) of Section 145 of the Income-tax Act, 1961 on similar facts.

Conclusion: The referred questions were answered in favour of the assessee and against the Revenue.

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