20 July 2013
IF AN INDIVIDUAL RENT OUT HIS TERACE TO ANY TELECOM COMPANY FOR ERECTING THEIR TOWERS, THAN SUCH INCOME WOULD BE TAXABLE IN WHICH HEAD.?? HOUSE PROPERTY OR INCOME FROM OTHER SOURCES.
20 July 2013
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”
CAclubindia
