2015 (2) TMI 159 - AT - Income Tax

Computation of annual value to be taxed under the head income from house property - AO rejected this claim for deduction on the ground that, income regarding installation of antenna was taxable under the head income from other sources - whether or not deduction under section 24(a) @ 30% of the annual value is available in respect of computation of income under the head income from house property in respect of income from renting of terrace for installation of mobile antenna? - Held that - As the rent received by the assessee for use of space, by Bharti Airtel Limited and Idea Cellular Limited, in a building, or part thereof, owned by the assessee, in our considered view, the rent so received must be taken into account in computation of annual value to be taxed under the head income from house property . Accordingly, as learned counsel for the assessee rightly contends, the deduction under section 24(a) is admissible on the facts of the present case. We, therefore, reverse the stand of the authorities below and uphold the stand of the assessee. The Assessing Officer is, accordingly, directed to delete the impugned disallowance. - Decided in favour of assessee.

Summary

Issues:
- Challenge to the correctness of the order dated 26th April 2013 passed by the Commissioner (Appeals) regarding assessment under section 143(3) of the Income Tax Act, 1961 for the assessment year 2009-10.
- Adjudication on the availability of deduction under section 24(a) @ 30% of the annual value for income from renting of terrace for installation of mobile antenna.

Analysis:
1. The appellant contested the order passed by the Commissioner (Appeals) challenging the assessment under section 143(3) of the Income Tax Act, 1961 for the assessment year 2009-10. The primary issue under consideration was the availability of deduction under section 24(a) for income derived from renting out a terrace for the installation of mobile antennas.

2. The Assessing Officer rejected the claim for deduction under section 24(a) on the grounds that the income from the installation of antennas was taxable under the head "income from other sources" and not "income from house property." The appellant argued that the rental income should be considered as income from house property, thereby making them eligible for the deduction under section 24(a).

3. The Commissioner (Appeals) upheld the Assessing Officer's decision based on a precedent from the Hon'ble Calcutta High Court regarding income from hoardings. However, the appellant contended that the rent received was for the space provided for antenna installation, not for the antennas themselves, and thus should be considered as income from house property.

4. The Tribunal analyzed the legal provisions and the facts of the case. It was established that the rent received was for the use of space by the companies to install antennas on the appellant's building. As the space rented was part of the building, the income should be taxed under the head "income from house property," making the deduction under section 24(a) applicable.

5. The Tribunal disagreed with the Commissioner (Appeals) and reversed the decision, directing the Assessing Officer to delete the disallowance. The rent received for the space provided for antenna installation was deemed as income from house property, entitling the appellant to the deduction under section 24(a.

6. In conclusion, the Tribunal allowed the appeal, emphasizing that the rent received for providing space for antenna installation should be taxed as income from house property, thereby upholding the appellant's claim for deduction under section 24(a).