9911796707
TMI Blog2012 (8) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... ears 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 agreemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom business , ignoring the provisions of section 27(iiib) read with section 269 UA(f) of the Income Tax Act, 1961, according to which, the period of lease exceeding 12 years, the income is assessable under the head Income from house property in assessment year 2003-2004 and onwards? The question sought to be raised in paragraph 6.3 of the appeal was not pressed. 3. The respondent - assessee filed its return of income on 29th October, 2006, declaring a total loss of Rs.48,626/-. The Assessing Officer made an order under section 143(3). The annual value under section 23(1)(a) was computed at Rs.60,27,027/-. A deduction under section 24 at 30% amounting to Rs.18,08,108/- was allowed. He, accordingly, assessed a sum of Rs.42,18,919/- to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof, by virtue of any such transaction as is referred to in clause (f) of Section 269-UA, shall be deemed to be the owner of that building or part thereof; 269UA In this Chapter, unless the context otherwise requires, .............. (d) immovable property means - (i) any land or any building or part of a building, and includes, where any land or any building or part of a building is to be transferred together with any machinery, plant, furniture, fittings or other things, such machinery, plant, furniture, fittings or other things also. Explanation.- For the purposes of this sub-clause, land, buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessionaire (Respondent) and the Sole Concessionaire takes from the Hotel Company on licence basis the said shopping arcade for a period of 11 years commencing from the date of occupation certificate of the shopping arcade. (4) The Sole Concessionaire shall observe and perform the following terms and conditions and stipulations, namely : (i)(a) To pay to the Hotel company compensation for the said licence commencing from the date of occupation certificate, at the rate of Rs.150/- per sq. mtr. per month during the period of the licence and pro-rata compensation for any broken period, which compensation shall be paid monthly on or before the 10th day of the month following the month for which it is due and for any broken period at the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Sole Concessionaire shall observe and perform the following terms and conditions and stipulations, namely : (i)(a) To pay to the Hotel company compensation for a period of three years commencing upto 31/03/2001 at th rate of Rs.150/- per sq. mtr. per moth and thereafter for a period upto 28th November, 2008 at the rate of Rs.250/- per sq. mtr., per month and prorata compensation for any broken period, which compensation shall be paid monthly on or before the 10th day of the month following the month for which it is due and for any broken period at the end of such period. The duration of this agreement was 10 years. The consideration was also substantially enhanced. 10. Mr. Gupta submitted that the sum of the duration of the licence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was separate and distinct and was entered into on the basis of fresh negotiations. 14. The important terms and conditions of the agreements viz. the duration and the consideration are also different. The duration of the licence under the first agreement was 11 years, whereas it is for a period of 10 years under the subsequent agreement. More important is the fact that the consideration under the second agreement is substantially higher than under the first agreement. It is obvious that the consideration was negotiated afresh. There is not even a whisper in the first agreement about any subsequent agreement. 15. Section 269UA(f) does not operate differently merely because the licencee under different agreements is the same. It is always ..... X X X X Extracts X X X X X X X X Extracts X X X X
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