Hotel business income not taxable where licence was cancelled and others carried on the business independently.

Income from the hotel, bar and restaurant business for the relevant period was not includible in the assessee's income because the business was found not to have been carried on by the assessee after the death of the person managing it. Once the licence stood cancelled and the premises were taken over by others who operated the business on their own behalf, no income was derived by the assessee for that period. The resulting assessment question was answered in favour of the assessee.

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Issues: Whether the income from the hotel, bar and restaurant business for the period from 2 June 1968 to 31 December 1968 was includible in the assessee's income for assessment year 1969-70.

Analysis: The business for the relevant period was found not to have been carried on by the assessee. After the death of the person managing the business, the licence stood cancelled, and the premises were taken over by others who carried on the business on their own behalf. On these facts, no income from that business was derived by the assessee during the period in question.

Conclusion: The income from the hotel, bar and restaurant business for the said period was not includible in the assessee's income, and the question was answered in favour of the assessee.

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