Sum received on renting of terrace for installation of mobile tower taxable as house property income: ITAT

Sum received on renting of terrace for installation of mobile tower taxable as house property income: ITAT

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Sum received on renting of terrace for installation of mobile tower taxable as house property income: ITAT

Facts:
a) Assessee had derived income from letting out some space on terrace for installation of mobile towers/antenna which was offered “as income from house property”. Further, against such income the assessee had claimed deduction under section 24(a).
b) Assessing Officer (AO) observed that the terrace could not be termed as house property as it was the common amenity for members. He also observed that the annual letting value of the terrace was not ascertainable.
c) Accordingly, he concluded that the income received by the assessee from the mobile companies towards installation of mobile towers/antenna was to be treated as “income from other sources”.
d) CIT(A) upheld order of AO. Aggrieved-assessee filed the instant appeal before the ITAT.
The ITAT held in favour of assessee as under:
1) The terrace of the building couldn’t be considered as distinct and separate but certainly was a part of the house property. Therefore, letting-out space on the terrace of the house property for installation and operation of mobile tower/antenna certainly amounts to letting-out a part of the house property itself.
2) The observation of the AO that the terrace couldn’t be considered as house property was unacceptable. From the material on record, it was evident that the income received by the assessee from the cellular operators/mobile companies was on account of letting out space on the terrace for installation and operation of antennas and nothing else.
3) Thus, the rental income received by the assessee from such letting-out had to be treated as income from house property. – [2018] 98 taxmann.com 365 (Mumbai – Trib.)

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