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In the instant case, appeal has been filed by assessee and the only issue in dispute is confined to disallowance of deduction claimed towards repairs and maintenance under section 24 of the Income Tax Act, 1961.
AO noticed that the assessee has derived rental income from mobile towers which has been offered as income from house property. Further, against such income assessee has claimed deduction under section 24(a) of the Act. AO concluded that the income received by the assessee from the mobile companies towards installation of mobile towers / antenna is to be treated as income from other sources.
CIT also concluded that the income received by the assessee from the mobile companies is a compensation for providing facilities and services to the cellular operators to install, use and operate the cellular base station. Thus, he held that such income derived by the assessee has to be assessed as income from other sources. Held that—the observation of the Assessing Officer that the terrace cannot be considered as house property is unacceptable. Thus 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. Therefore, there being no material difference in fact, applying rule of consistency also, assessee’s claim deserves to be allowed. Accordingly, I direct the Assessing Officer to treat the rental income received by the assessee from cellular operator as income from house property and allow deduction under section 24(a) of the Act. Ground raised is allowed

Shanti Prime Publication Pvt. Ltd.

Section 23, 24, 56 of Income Tax Act, and 1961—Income from house property or income from other source— In the instant case, appeal has been filed by assessee and the only issue in dispute is confined to disallowance of deduction claimed towards repairs and maintenance under section 24 of the Income Tax Act, 1961.
AO noticed that the assessee has derived rental income from mobile towers which has been offered as income from house property. Further, against such income assessee has claimed deduction under section 24(a) of the Act.

AO concluded that the income received by the assessee from the mobile companies towards installation of mobile towers / antenna is to be treated as income from other sources.
CIT also concluded that the income received by the assessee from the mobile companies is a compensation for providing facilities and services to the cellular operators to install, use and operate the cellular base station. Thus, he held that such income derived by the assessee has to be assessed as income from other sources.

Held that—the observation of the Assessing Officer that the terrace cannot be considered as house property is unacceptable. Thus 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.

Therefore, there being no material difference in fact, applying rule of consistency also, assessee’s claim deserves to be allowed. Accordingly, I direct the Assessing Officer to treat the rental income received by the assessee from cellular operator as income from house property and allow deduction under section 24(a) of the Act. Ground raised is allowed. [KOHINOOR INDUSTRIAL PREMISES CO–OPERATIVE SOCIETY LTD. VERSUS INCOME TAX OFFICER WARD–31 (2) (2) , MUMBAI] [2018] [6] [ITCD Online] [22] [ITAT MUMBAI]