Rental income of terrace for mobile tower in case of co-op s

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Santosh (Querist)
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29 December 2011 Dear Sir,

Rental Income of Terrace for Mobile Tower in case of Co-Op Society is under which head.

As Terrace is the part of the building, it should come under Income from House Property.

Thanks in advance.

Mahesh Paryani

Mahesh Paryani (Expert)
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29 December 2011 Dear Santosh

It would not be regarded as income from house property but would be under the head income from profits and gains of business and profession or income from other sourses as the case may be.
this comment is on the basses of the definitation of income from house property.

Regards

Santosh

Santosh (Querist)
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29 December 2011 Sir,

But Terrace is a part of Building and hence should come under the definition of House Property

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Mahesh Paryani

Mahesh Paryani (Expert)
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29 December 2011 Dear Santosh.

The word property in section 22 to 27 have been not been used in a wider sense or meaning . It is very much limited to a type defined by the language of the section i.e. buildigs or land appurtenant there to (Chitpore Golabari Co P Ltd V CIT (1971) 82 ITR

So by the above case you have to try to understand the limited defination of building and land appurtenant.

Indications for this are while calculating Income from house property you come across Standard rent, Municipal value. you would not be able to get these figures for your calculation.

Moreover there is a case law not exactly matching your case but you can get a hint from the same

If a land appurtant thereto yealds any independent and commercial income such income shall be taxed under business income or income from other sources
(Ramalakshmi Reddy (M) v CIT (1998) 232 ITR 281 (Mad)

This is as per my openion you will have to refer to a professional for detail discussion and understanding the facts of the case