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IN THE INCOME TAX APPELLATE TRIBUNAL "H" BENCH, MUMBAI
BEFORE S/SHRI B.R.BASKARAN, AM AND PAWAN SINGH, JM
./I.T.A. No.2489/Mum/2014
( / Assessment Year:2009-10)
Asstt. Commissioner of Income / Hrishikesh Co-operative Housing
Tax-18(1), Room No.116, Society Limited.,
Vs.
1st floor, Piramal Chambers, Hrishikesh Apartment,
Parel, Veer Savarkar Marg,
Mumbai-400012. Prabhadevi,
Mumbai-400028
( /Appellant) .. ( / Respondent)
./ ./PAN. :AAAAHO530K
/ Appellant by Shri K.Mohandas
/Revenue by Shri Hari S Raheja
/ Date of Hearing
:6.10.2015
/Date of Pronouncement: 6.10.2015
/ O R D E R
Per B R Baskaran, AM:
The revenue has filed this appeal challenging the order dated 28-01-
2014 passed by Ld CIT(A)-29, Mumbai for assessment year 2009-10,
wherein he has held that the rent received for letting out open
spaces/compound wall for putting up hoardings is assessable under the
head Income from house property.
2. We heard the parties and perused the record. The facts are that the
assessee has entered into an agreement with M/s Shree Swami Samrath
Advertising for putting up hoarding structures on the compound wall and
open spaces within its premises upon receipt of rent. The assessee
offered the rental income under the head Income from house property.
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However, the assessing officer assessed the same under the head income
from other sources. In the appellate proceedings, the Ld CIT(A) reversed
the order of the AO and held that the income received by the assessee is
assessable as income from house property. Aggrieved, the revenue has
filed this appeal before us.
3. At the time of hearing, the Ld A.R submitted that the issue under
consideration is covered by the decision of Hon'ble jurisdictional Bombay
High Court rendered in the case of The Cit Vs. Balaji Bhawan Owners
Premises Co-op Soc. Ltd (ITA No.3183 of 2010 dated 16-08-2011) and
also by the decision rendered by the co-ordinate bench of Tribunal in the
case of Meherabad Co-op Hsg. Soc. Ltd Vs. The ITO (ITA
No.4370/Mum/2011 dated 13-06-2012). In both these cases, the rent
received for allowing installation of communication towers on the terrace
of the building was held to be assessable under the head Income from
house property.
4. The Ld D.R submitted that the above said cases are distinguishable
on facts, i.e., according to Ld D.R, the assessee has received the rent for
allowing installation of Hoarding boards on the compound wall and in the
open area of the building, where as in the above cited cases, the rental
income was received for installing mobile communication towers on the
terrace of the building.
5. In our view, the distinguishing features brought out by Ld D.R do
not make any difference. A perusal of sec. 22 of the Act would show that
the annual value of property consisting of any buildings or lands
appurtenant thereto .... are chargeable to income tax under the head
"Income from House property". There is no dispute with regard to the
fact that the hoardings have been installed on the compound wall and the
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open area of the building, which falls in the category of "lands appurtenant
to the building". We notice that the Ld CIT(A) has followed following
decisions rendered by the co-ordinate benches of Tribunal, wherein it has
been held that the letting out of the terrace space for putting up neon
signs and hoardings would constitute income from house property:-
(a) Tirupati Mahalaxmi Co-op Housing Society (ITA
No.3846/Mum/2010 dated 30-08-2011)
(b) Kamlesh Real Estates Pvt Ltd Vs. AO (ITA No.1451/M/2010 dated
20-04-2011)
In the case of Kamlesh Real Estates Pvt Ltd, the Tribunal has noted the
fact that the rental income is derived on letting out the terrace space and
not for letting out the hoardings or towers.
6. In the instant case also, the assessee has let out the land
appurtenant to the building and also a part of compound wall and has
earned rental income. Hence, we are of the view that the Ld CIT(A) was
justified in holding that the rental income received by the assessee is
assessable as income from house property by following the decision
rendered by the co-ordinate benches of the Tribunal, referred supra.
7. In the result, the appeal filed by the revenue is dismissed.
Pronounced accordingly on 6th October, 2015.
6th October, 2015
Sd sd
(PAWAN SINGH) ( B.R. BASKARAN)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Mumbai:
6th October, 2015.
.../ SRL , Sr. PS
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/Copy of the Order forwarded to :
1. / The Appellant
2. / The Respondent.
3. () / The CIT(A)- concerned
4. / CIT concerned
5. , , /
DR, ITAT, Mumbai concerned
6. / Guard file.
/ BY ORDER,
True copy
(Asstt. Registrar)
, /ITAT, Mumbai
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