an assessee who was deriving income from house property,realised a sum of Rs 52,000 on account of display of advertisement hoardings of various concerns on the roof of the building.he claims this amount should be considered under the head income from house propertry & not income from other sources.
How do you deal with the following under the provisions of income tax act?
In the case of Mukherjee Estate P. Ltd. reported in 244 ITR 1, the Hon’ble Calcutta High Court has held that income on account of display of hoardings on the top of the building for advertisement purposes to display the advertisement is not an income from house property as hoardings do not form part of the building which is income from the house property and other parts of the building. Hon’ble High Court has clearly held that letting out the hoardings, which are neither part of the building nor the land appurtenant thereto, therefore, such income cannot be income from house property. To treat the income from house property, first it should be letting out of a property. This is a primary requirement of treating any income from income from property. Similarly, the income derived from installation of towers/antennas on roof of building and giving parking space on rent is not income from house property which falls or to be assessed under section 22 of Income-tax Act. Any income from these sources has to be assessed under the head “income from other sources”
Regards,
Devendra Kulkarni
CAclubindia
