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2018 (10) TMI 437 - AT - Income TaxRental income from mobile towers - income from house property or income from other sources - Disallowance of deduction claimed towards repairs and maintenance u/s 24 - AO concluded that the income received from the mobile companies towards installation of mobile towers / antenna is to be treated as income from other sources - CIT(Appeals) held that the income received by the assessee is in the nature of compensation for providing services and facility to cellular operators - Held that:- The assessee has let–out some space on the terrace of the building to the cellular operators for installing and operating the mobile towers / antenna for the purpose of providing mobile telecom services. 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. CIT(Appeals)'s reference 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. Thus the rental income received by the assessee from such letting–out has to be treated as income from house property. - Decided in favour of assessee.
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