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2023 (6) TMI 1027 - ITAT DELHICorrect head of income - letting out of Hotel/Resort as running business - treatment of revenue receipts from operation of Hotel/Resort - Contract for managing the business from the said premises on a consideration of management license basis - No fixed consideration - addition qua revenue from House Property or business income - HELD THAT:- As in the agreement executed by Assessee with M/s Four Seasons, not a single term or condition reflects the essence of rent agreement. The Assessee had received the receipts/income from the revenue generated by M/s Four Seasons on fluctuation basis and undisputedly has not received any fixed amount, which can be termed as “rental income”, hence, we do not have any hesitation to hold that the revenue receipts generated by the Assessee from M/s Four seasons, are undoubtedly income from the Business and therefore, should be treated under the head “Business Income” but not as rental income from “House Property” as determined by the authorities below. Consequently the AO is directed to delete the addition on this issue and re-compute the liability. Disallowing the claim of set off of brought forward unabsorbed depreciation losses of earlier years - In view of our decision in treating the receipts as income under the head “Business Income”, Assessee shall be eligible for unabsorbed depreciation as claimed for. AO is directed to allow the set off of the unabsorbed depreciation. Appeal filed by the Assessee stands allowed.
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