Kohinoor Industrial Premises Co–operative Society Ltd. Vs ITO (ITAT Mumbai)
The terrace of the building cannot be considered as distinct and separate but certainly is 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.
That being the case, the observation of the Assessing Officer that the terrace cannot be considered as house property is unacceptable. As regards the observation of the learned Commissioner (Appeals) that the rental income received by the assessee is in the nature of compensation for providing services and facility to cellular operators, it is relevant to observe, the Departmental Authorities have failed to bring on record any material to demonstrate that in addition to letting-out space on the terrace for installation and operation of antenna the assessee has provided any other service or facilities to the cellular operators.
Thus, from the material on record, it is evident that the income received by the assessee from the cellular operators/mobile companies is on account of letting out space on the terrace for installation and operation of antennas and nothing else. That being the case, the rental income received by the assessee from such letting-out has to be treated as income from house property.
