TMI Blog2011 (11) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 and ITA No.1072 of 2006 - - - Dated:- 8-11-2011 - V.G. Sabhahit, S.N. Satyanarayana, JJ. M. Thirumalesh, Adv. for the Appellant A. Shankar and Shri M Lava, Advs. for the Respondent JUDGEMENT 1. These appeals are filed by the Revenue being aggrieved by the order passed by the Income Tax Appellate Tribunal, Bangalore Bench 'B' (hereinafter called as 'Tribunal' for short) in ITA Nos.1311 to 1313(Bang)/2003 for the Assessment years 1995-96 to 1997-98. 2. The assessee had filed its return of income for the assessment year 1996-97 on 31.3.1997. The return was assessed in the status of AGP. The return was processed under Sec, 143(1) of the Act and since it was found that the assessee had rental income which is asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the Revenue. Being Aggrieved by the order of the Tribunal these three appeals are filed by the Revenue. 3. We have heard the learned counsel appearing for the appellants and the learned counsel appearing for the respondent. 4. I.T.A. Nos.1073/06 and 1071/06 have been admitted on 18.4.2007 and ITA No.1072/06 has been admitted on 5.4.2007 for consideration of following substantial questions of law raised in the appeal memo which reads as follows: 1. Whether the Appellate Authorities were correct in holding that rental income should be treated as license fee during the current assessment year and brought to tax under the head "Income from other Sources" and not under the head "Income from house property" as declared by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied upon the decision of the Hon'ble Supreme Court in the case of Sultan Brothers Pvt. Ltd. vs. Commissioner of Income Tax, Bombay City-II reported in 1964 (LI) ITR 353 wherein, the Hon'ble Supreme Court while considering the question about composite letting of building fitted with furniture and fixtures for the purpose of being run as a hotel. Income derived from lease, whether income from business or income from property and has laid down three tests to be satisfied to include the income as income from other sources. The learned counsel submitted that though the first and second conditions are satisfied as there is only one agreement, wherein the licensee is put in possession of the premises and fixtures as per the license and the rent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 11 months on and from to-day i.e., from First day of April 1994 that on completion of the said 11 months or on completion of any extended period, the LECENSEE is vested with the option to renew the License for any period not exceeding 36 months and in total the LICENSEE is vested with the option to renew/extend the License only and upon to 31st day of March, 1997. 6. The LICENSEE shall effect and keep in god condition the entire schedule property and other Assets, subject to normal wear and tear, during tenure of the License and without damage to such schedule property and other Asset. However if any damage is caused to the scheduled property for the improper use, negligence or inadvertent use by the LICENSEE and or/its workmen, all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown the subsequent agreement applicable from 31.3.1997 the income shown as income from 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. Wherefore, the concurrent finding of fact arrived at by the appellate authority that the income has been rightly shown as income from other sources as the income received pursuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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