The following decisions have dealt with the issue as to whether income from letting out of terrace for placing antenna tower is taxable under head house property.

Kohinoor Industrial Premises Co-op Society Ltd. vs. ITO [2018] 98 365 (Mumbai-Trib.), 197 TTJ 966It was held that income earned by assessee society from letting out space on terrace for installation of mobile tower / antenna is taxable as “Income from House Property” and consequently, deduction u/s. 24(a) is allowable in respect of such income.

The issue before the Tribunal was to decide the nature of income received by the assessee for letting out such space to the cellular operator/mobile company for installing and operating mobile towers/antenna. It held that 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. The Tribunal held that the observation of the AO that the terrace cannot be considered as house property is unacceptable.

Maker Tower Premises Co. Op. Society Ltd. v ACIT [2021] 125 220 (Mumbai – Trib.) – The Tribunal held that income earned by assessee on account of renting out of terrace for purpose of installation of antenna tower was taxable as ‘income from house property’.

Citi Centre Premises Co-Op. Society Ltd.  vs. ITO ITA No.: 3029 and 3030/Mum/18 – The co-operative society earned rental income earned by letting out the building terrace and permitting erection and installing of cell phone towers thereon.  The Tribunal held that the rental income earned by a co-operative society for letting out the building terrace is assessable under the head ‘Income from House Property’ and is entitled to deduction u/s. 24(a).

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