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2012 (8) TMI 711 - BOMBAY HIGH COURTReceipt of rent and compensation - Business income OR Income from House Property - the period of lease exceeding 12 years - revenue invoking the provisions of section 27(iiib) r.w.s. 269 UA(f) - Held that:- By an agreement dated 7th November, 1984 HLL granted the assessee a licence in respect of an area admeasuring about 450 square meters on the term of not entitled to renew the same upon the expiry of the period of 11 years from the date of the occupation certificate of the shopping arcade - As the assessee and HLL entered into a fresh agreement dated 24th January, 1999 for a duration of this agreement was 10 years with enhanced consideration, no connection whatsoever between the two agreements can be developed - no indication of any factors on the basis of the agreements or even otherwise which would indicate that the latter agreement was a continuation of the first agreement - as neither the assessee nor HLL had a right to renew the first agreement this is the clearest indication that the subsequent agreement was separate and distinct and was entered into on the basis of fresh negotiations. As the first agreement was entered into on 7th November, 1984 before the provisions of Section 27(iiib) and 269UA(f) came into force with effect from 1st April, 1988 and 1st October, 1996, respectively, thus it cannot, therefore, be said that the agreement was structured by the parties thereto to get over the said provisions - thus the rental income is need to be held under the head “Profits and gains from business” - in favour of assessee.
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