Mon. Sep 28th, 2020

Cit vs M/S Bharat Hotels on 24 July, 2015

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1. These appeals by the Revenue under Section 260A of the Income
Tax Act, 1961 („Act‟) pertain to the Assessment Years („AYs‟) 1989-
90, 1990-91, 1991-92, 1992-93, 1993-94. They are directed against a
common order dated 14th February 2000 passed by the Income Tax
Appellate Tribunal („ITAT‟) in the appeals and the cross-appeals filed
by the Revenue and the Assessee for the said AYs.
2. The facts are that New Delhi Municipal Council („NDMC‟) invited
an offer in 1976 from Delhi Automobiles(P) Ltd. („DAL‟) for the
construction of a five star hotel in a land located at Barakhamba Road.
DAL submitted an offer of paying Rs.28,11,000 per annum as licence
fee to the NDMC. However, no agreement as such was executed at
that stage. A suit was filed by DAL against NDMC for specific
performance with an alternative prayer for damages. The suit ended in
a compromise and this led to an agreement dated 11 th March 1981
being executed between DAL and NDMC. The key features of this
agreement were as under:

Source: Indian Kanoon

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