The Kolkata Bench of the Income Tax Appellate Tribunal ( ITAT ), held that Rental income from installation of IBS is Income from house property.
The appeal has been preferred by the Revenue against the order passed under Section 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Appeals) which is arising out of the assessment order framed under Section 143(3) of the Income Tax Act.
The assessee, AMRI Hospitals Ltd is a limited company and runs a hospital in the name of Amri Hospital and also runs a diagnostic centre. The assesseereceived Rupees twenty-five lakhs as rental income from various parties for allowing them to instal IBS towers on the terrace of the building owned by it. The assessee disclosed this rent as income from house property. However, the Assessing Officer (AO) held it to be an Income from other sources.
The CIT(A) held that the rent received from IBS tower is Income from house property and it is against this order that the present appeal has been preferred by the Revenue. The CIT(A) placed reliance on the assessee’s own case in ITA No. 2277/Kol/2014 dated 12.02.2017 for AY 2010-11 held it as an Income from house property.
The Departmental Representative appearing for the Revenue failed to controvert that the issue is covered in favour of the assessee by the decision of the Tribunal in assessee’s own case by placing before the Tribunal any binding precedence in Revenue’s favour.
Dismissing the appeal the Division Bench consisting of Manish Borad, Accountant Member and Sonjoy Sharma, Judicial Member observed that “Respectfully following the decision of this Tribunal, hold that the alleged rental income from installation of IBS tower has been rightly offered to tax as Income from house property. Thus, no interference is called for in the finding of the CIT(A).”
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