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TMI Blog2012 (2) TMI 386X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness is also not under dispute. Tribunal has also recorded that licence fee receivable should be included as "business income" and accordingly, depreciation on hotel building is to be allowed. Aforesaid is upheld – Decided against the Revenue. - ITA 344/2011 and ITA 355/2011 - - - Dated:- 14-2-2012 - Sanjiv Khanna, R.V. Easwar, JJ. Rashmi Chopra, sr. standing counsel for the Appellant M.S. Syali, Sr. Adv. with Rahul Sateeja, Adv. for the Respondent Sanjiv Khanna, J 1. These two appeals filed by the Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short) relate to assessment years 2001-02 and 2002-03. They arise out of the common order of the Income Tax Appellate Tribunal (Tribunal, for short) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 153A of the Act was issued and, thereafter the assessment orders have been passed under Section 153A read with Section 143(3) of the Act. In the assessment order, the Assessing Officer disallowed the claim of depreciation holding that the assessee the hotel building was not being used for business. The CIT(Appeals) deleted the said addition. 7. The findings recorded by the CIT(Appeals) in respect of assessment year 2001-02 read as under: "2.3.2 It appears that only to disallow the claim of depreciation, this observation has been made by the AO. But for claiming the depreciation it is not necessary to use the asset by the assessee directly. For example in the case of lease transaction, the lease rent is assessable in the han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disturb the claim of depreciation at the same time. This action of the AO was approved by CIT(A) also. The matter was not taken in further appeal for this year in ITAT by the appellant. Thus, for this year the settled position is that accrued license fee of Rs.6,81,084/- is added to the income of the appellant and the claim of the depreciation was allowed. It is worth-mentioning that in the A.Y.1997-98 appellant has gone to the Tribunal against the action of AO as approved by CIT (A) to tax accrued license fee as the income. The ITAT has decided this issue in favor of the appellant. Following that decision in A.Y. 2003-04, the CIT(A) has deleted the addition made by the AO on account of accrued license fee. But as far as assessment year 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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