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TMI Blog2017 (10) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... the above discussions, as also bearing in mind entirety of the case, hold that the income earned by the assessee, in consideration of having given rights to have play hoardings etc. are taxable as income from house property. Accordingly, deduction under section 24(a) was indeed admissible in the present case. Direct the Assessing Officer to allow the deduction under section 24(a), as claimed by the assessee. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant material facts are like this. The assessee is a cooperative housing society. During the relevant previous year, the assessee received ₹ 16,00,000/- from M/s Selvel Media Services Pvt. Ltd., in respect of hoarding rent. These hoardings, as is the claim of the assessee, are built on common land owned by the society. The assessee treated the hoarding rent receipts as income taxable under the head "income from house property", and, accordingly claimed deduction under section 24(a) of the Act @ 30% of the annual value. The Assessing Officer, however, declined this claim by observing that "these hoardings are erected in the ground adjacent to satellite Road and there is no building nearby. Meaning thereby that the land on which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en how can the land on which hoardings are erected be termed as land appurtenant thereto. The assessee co-operative society is neither owner of the residential buildings constructed on the land on which hoardings are erected nor the assessee is in a position to let out these residential buildings. Therefore, the rent derived from hoardings cannot be termed as having been derived from land appurtenant thereto. In view of the foregoing, the receipts of ₹ 16,00,000/- in the hands of the assessee co-operative society is taxed as income from other sources." 4. Aggrieved, assessee carried the matter in appeal before the learned CIT(A) but without any success. Learned CIT(A), while confirming the action of the Assessing Officer, opined as f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty income. The hoardings cannot be treated as part of the building and, therefore, the income can be assessed only as income from other sources. The reliance is also placed on the decision of Calcutta High Court in the case of Mukherjee Estate (P) Ltd. (224 ITGR 1). He ground of appeal is, therefore, dismissed." 5. The assessee is not satisfied and is in further appeal before me. 6. I have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of applicable legal position. 7. I find that, as learned Counsel for the assessee rightly points out, the assessee Society is a tenement co-operative housing society, in which ownership of the land and building vests in the society itself, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a High Court's judgement in the case of Mukherjee Estates Pvt. Ltd. Vs. CIT [(2000) 244 ITR 1 (Cal)], I may only refer to the following observations made by me in the case of Manpreet Singh vs. ITO [(2015) 38 ITR (Trib) 55 (Del)]. 7. We find that so far as Hon'ble Calcutta High Court's judgment in the case of Mukerjee Estates Pvt. Ltd. (supra) is concerned, it is wholly misplaced inasmuch as it was a case in which the Tribunal had given a categorical finding that the assessee had "let out the hoardings" and in which the assessee's claim that he had let out the roof for advertisement and hoarding remained to be unsubstantiated inasmuch as when "a query was put to him (i.e. the assessee) whether there was an agreement to this effect to conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Hon'ble Calcutta High Court as well. It was based on this uncontroverted finding that Hon'ble Calcutta High Court reached the conclusion that the income in question is taxable as income from other sources. This decision, therefore, cannot even be an authority for the proposition that the income from renting out the roof for placing the hoardings can be treated as income from other sources. Quite to the contrary to this interpretation, the observations made in this decision unambiguously show that when it can be demonstrated, as Their Lordships wanted the assessee to demonstrate in that case, that the consideration received is rent for letting out the roof rather than the hoardings, the legal position will be materially different." 8. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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