TaxTMI 
TaxTMI 
2012 (2) TMI 386
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....e with ITC Ltd. As per the said agreement, the assessee was entitled to 23% of the gross turnover of the hotel as licence fee. 3. The licence fee receivable/paid was declared and treated as income. The depreciation on the asset i.e. the hotel building was also allowed to the assessee. 4. On 12th March, 1993, the hotel building was damaged in the serial bomb blast. Thereafter, disputes arose between the assessee and ITC Ltd. regarding repair to the damaged portion of the structure and other related issues. The respondent-assessee claims that there was a mutual settlement on 11.5.2005 and a consent award was passed on 24th May, 2005. 5. In the returns of income, for assessment years 2001-02 and 2002-03, the assessee ha....
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....ng used for the business in real sense by the lessee, is allowed to the lessor only. Similarly in the case of the appellant also, under hotel operator agreement, the appellant has allowed ITC Ltd to run hotel owned by it and therefore the share of revenue received or receivable in the form of license fee as per this agreement is liable to be assessed in the hands of the appellant as business receipt and depreciation on hotel assets actually being used in the business of hotel run by ITC ltd is to be allowed in the hands of appellant against this business receipt. Exactly same principle was all along adopted by the department in past in this case including the original order passed u/s. 143(3) in this case for A.Y. 2001-02 by the AO which ha....