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: