TaxTMI 
TaxTMI 
2018 (2) TMI 1285
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....enshrined U/S 22 to 27 and 269UA of Income Tax or would it constitute income from other sources? 3. To avoid prolixity we are not referring to assessment and appellate orders. We would note the relevant undisputed facts as held and found by the Tribunal. 4. M/s Asian Hotels Limited has constructed a 5-Star deluxe Hotel known as „Hyatt Regency Delhi‟ at Bhikaji Kama Place, Ring Road, New Delhi on land measuring 20000 sq. mts. leased to them by the Delhi Development Authority vide perpetual lease deed dated 22.07.1982. The hotel has a shopping plaza to provide essential facilities to residents and others. 5. The Appellant vide license agreement dated 14.01.1986 with M/s Asian Hotels Ltd. had acquired right to use shop Nos. U-49, U-50, U-51 and U-52 including corridor in the said shopping Plaza. The license was for a period of five years and the appellant was liable to pay license fee of Rs. 6967/- per month. The license was renewable for additional period of not exceeding five years at a time. Paragraphs 1, 2 and clause (a) of paragraph 3 of the license agreement read as under:- 1. In consideration of the periodical payment hereinafter agreed to be paid by the Licence....
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....rpose of altering, repairing services or overhauling any apparatus, machine, plant or installations; Provided further that in the event of failure of the central air conditioning or the telephone installation due to any reason beyond the control of the licensor, the licensee shall have no recourse against the licensor for non provision of the above facilities/services; and (d) To permit the licensee to use the common portion such as entrances, passages, stairways in the shopping plaza as are specifically designated by it from time to time. 7. Appellant was also required to deposit interest free security deposit of Rs. 12 lakhs with the licensor for proper maintenance and compliance of the terms and conditions of the license agreement. As per Clause (d) of paragraph 5 of the license agreement, the Licensor, i.e. M/s Asian Hotels Ltd., had right to terminate the license on failure of the appellant to pay license fee on time and forfeit security deposit on such termination. The appellant was not entitled to raise any dispute in this regard. In terms of clause (e) of paragraph 5 of the license agreement security deposit was to be refunded by M/s Asian Hotels Ltd. to the appellant....
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....er the head "income from house property". 11. Section 22 charges income on annual value of the property owned by the assessee. The said Section reads as under:- "Income from house property. 22. The annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property". For income to be charged under the head "income from house property", the assessee must be the owner of the property. 12. The term "owner" has been defined in Section 27 of the Act in the following words:- "Owner of house property", "annual charge", etc., defined. 27. For the purposes of sections 22 to 26- (i) an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred; (ii) th....
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....such lease is to be granted and the further term or terms for which it can be so extended is not less than twelve years; (ii) in relation to any immovable property of the nature referred to in sub- clause (ii) of clause (d), means the doing of anything (whether by way of admitting as a member of or by way of transfer of shares in a co- operative society or company or other association of persons or by way of any agreement or arrangement or in any other manner whatsoever) which has the effect of transferring, or enabling the enjoyment of such property." 14. Counsel for the appellant accepts that sub-clauses (i) and (ii) of clause (f) to Section 269UA are not applicable and the appellant does not satisfy the conditions stipulated therein. Contention of the appellant that the license agreement was renewed from time to time is not a ground or reason to hold that the appellant had acquired ownership rights. The license agreement dated 14.01.1986 placed on record does not support the said contention. The new license agreements have not been placed on record. It is equally possible that the license agreement may not have been renewed. The license agreement is not a registered document. ....