2017 (11) TMI 1086

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....ssed by the Commissioner of Income Tax (Appeals) and the assessment order, holding that the income derived was income from house property, was restored. It is aggrieved by this order of the Tribunal, this appeal is filed by the assessee, with the following questions of law framed for the consideration of this Court: "A Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the income derived out of the property was chargeable under the head 'Income from house property' and not under the head 'Income from business or profession'? B In the facts and the circumstances of the case and in law when the assessee derives income from commercial asset, namely its hotel busi....

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....otels and Resorts Private Limited for a period of seven years. The compensation for giving the hotel along with other furnitures and fixtures on licence has been fixed in Article VIII of the agreement, the details of which may not be relevant for this judgment. In the return filed, the assessee offered the licence fee under the head "income from business". Subsequently, the return was processed under Section 143(3) and the income in question was brought to tax as income from house property. This order was set aside by the first appellate authority holding that the income in question was income from business. The Tribunal set aside the order of the first appellate authority and restored the order of assessment. It is in this background, this....

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....tanding and consistent with the facilities provided in hotels of similar class upon the terms and conditions" set out in the agreement. Thereafter, Article III of the agreement provides that the licensor covenants and agrees that the licensor shall permit the licensee to operate the hotel in accordance with the terms of the agreement. That the licence is granted authorising the licensee "to operate the hotel" is recited in several other provisions of the agreement. In Article VI, it is also stated that on expiry of the seven year period of agreement or on termination of the same, the licensee shall cease to have any right on the operation of the hotel and the licensor shall have full right to operate the hotel. Clause-1 of Item-IV of Articl....