Rental Income from letting out of terrace is to considered as income from house property subject to deduction under sec 24

Last updated: 18 June 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the above issue are that it was found by the Assessing Officer that the assessee has allowed M/s. Hutchison Max Telecom Ltd. to erect the tower on their terrace in consideration of an amount of ` 5,93,700 and claimed as income from house property subject to deduction under section 24 of the Act. However, the Assessing Officer while observing that the assessee’s society has not provided any house property to the company and it is only the open terrace which has been let out, treated the same as assessable under the head income from other sources without allowing any expenditure in this regard. On appeal, the learned CIT(A) while confirming the Assessing Officer’s action treating the income from other sources directed the Assessing Officer to allow 20% of the gross receipts as expenses to earn such income

Citation :
M/s Mahalaxmi Sheela Premises CHS Ltd., 2, Bhulabhai Desai Rd, Mahalaxmi, Mumbai-26 PAN NO.AAABM0285F Appellant Vs. ITO WD 16(2)(1), Matru Mandir, Mumbai-400 034. Respondent