AGYA RAM Vs. COMMISSIONER OF INCOME TAX, DELHI

JUDGEMENT

(1.) These four appeals by the Assessee are directed against a common order in ITA Nos. 1867 to 1870/Del/99 for the Assessment Years (,,AYs) 1990 -91 to 1993 -94. By the order dated 30th October 2006, the Court framed the following questions of law for consideration:

(2.) The facts in brief are that the Assessee was carrying on a business under the name and style of M/s. Supreme Auto Works at B -93, Okhla Industrial Area, Phase -II, New Delhi. It is stated that the said property is owned by him with land having been given on long term lease by the Delhi Development Authority (,,DDA) on which he has erected a factory premises. It is stated that the Assessee derived income from job work of repairs of batteries and was receiving licence fee from various persons for rendering services.

(3.) Since AY 1982 -83 the Assessee gave on licence 91% of the factory premises and was receiving licence fees. According to Mr. Manjani, learned counsel for the Assessee, around that time the Assessee developed cataract in his eyes which rendered him nearly blind. As a result he ceased to carry on any business activity. The earning of licence fees was the only source of income. Clauses of the licence deeds