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2011 (11) TMI 459 - HC - Income TaxLicence fee for the premises and the furniture and fixtures - "Income from other Source" or "House property" - Revenue contended licence agreement to be lease deed and assessed income as rental income - Held That:- The intention of the parties while entering into the agreement dt. 1.4.1994 was only to grant license to the respondent and it cannot be said to be a lease deed. Further, having regard to the nature of consideration to be paid by the licensee as per clause 3 of the agreement, it is clear that the said license fee for the premises and the furniture and fixtures is inseparable Mere fact that the assessee has shown the subsequent agreement, applicable from 31.3.1997 the income shown as income form, house property having regard to the terms and conditions of the said agreement dt. 1.4.1997 would not by itself enable the revenue to hold that the earlier income had been shown wrongly as income from other sources and it ought to have been shown as income from house property as conditions of the said agreement relating to the consideration to be paid, wherein fixed rent of Rs. 2,20,000/- per month has to be paid by the lessee to the lessor and the deed is termed as lease deed. Thus income assessable as other Source and not house property - Decided in favor of assessee.
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