CLARIDGES HOTEL PRIVATE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) These 14 writ petitions moved under articles 226 and 227 of the constitution of India, raise common questions of facts and law and are, Therefore, being taken together. As the narration of facts would hereinafter show, they arise out of the initial transaction of sale for Rs. 16 lakhs of property No. 12, Aurangzeb Road, New Delhi, on July 19, 1972, by its 13 co -owners in favor of the Claridges Hotel Pvt. Ltd. One of the writs is by Claridges Hotel Pvt. Ltd., and the other 13 are by each of the 13 co -owners. These co -owners had held different shares in that in that property as under : -

(2.) The background of the facts is that there is a spacious hotel building and some residential portion situated at No. 12, Aurangzeb Road, New Delhi. The entire complex was owned by the firm, Bhola Nath Brothers. Its partners, who were close relations, constituted another firm, named Claridges Hotel, in the year 1955. In this new firm those partners and some of their other relations joined as partners. This firm obtained lease of the hotel building from the firm, Bhola Nath Brothers, on December 21, 1955, on a monthly rent of Rs. 15,950. One of the clauses of the lease was that the lessees were at their own cost and expenses entitled to put in the demised premises all such office fittings as might be required from time to time for their use and business.

(3.) It may be mentioned here that the residential building in that property continued to remain in possession of the owners, viz., the firm Bhola Nath Brothers. This portion was not let out under that lease.