Whether rent received from mobile company for use of terrace to install antenna is taxable as "Income from house property" or "Other sources" u/s 22?

Last updated: 20 January 2015

Court :
ITAT Delhi

Brief :
The assessee, an individual, had received sums aggregating to Rs. 2,91,723 from Bharati Airtel Limited and Idea Cellular Limited, towards renting out its terrace for the use by these companies as places where as, mobile communication service providers, the companies had installed antennas. The assessee had also claimed a deduction @ 30%, under section 24(a), from therental income so received. In the course of scrutiny assessment proceedings, the Assessing Officer rejected this claim for deduction on the ground that, “income regarding installation of antenna” was taxable under the head “income from other sources” whereas deduction under section 24(a) could only be allowed in respect of such income as was taxable under the head “income from house property”. The deduction of Rs 87,516 was thus added back to income of the assessee. Aggrieved by the stand so taken by the Assessing Officer, assesse carried the matter in appeal before the CIT(A) but without any success. Held that rent received from mobile phone company for use of terrace to install antenna is taxable as "Income from house property" and not as "Other sources".

Citation :
Manpreet Singh – Appellant – Versus – ITO – Respondent