In the matter of Kohinoor Industrial Premises Co-Operative Society Limited v. ITO [(2018) 98 taxmann.com 365 (Mumbai Trib.) decided on 05.10.2018], the Hon’ble ITAT Mumbai (‘ITAT’) held that Income earned by the Assessee from letting out space on terrace for installation of mobile tower/antenna was taxable as ‘income from house property’. The facts of the case are such that the Assessee offered income earned from letting out space on terrace for installation of mobile tower as ‘income from house property’. The Assessing Officer (“AO”) observed that terrace could not be termed as house property as it was a common amenity for the members. He further observed that conveyance was not executed in favour of the Assessee society, accordingly, the Assessee could not be considered as owner of the terrace. He also observed that Annual letting value of the terrace was not ascertainable. Accordingly, he concluded that the said income shall be treated as ‘income from other sources’. On appeal, the Hon’ble CIT(A) upheld the order of the AO stating that income received by the Assessee is in the nature of compensation received for providing facilities and services to cellular operators on the terrace of the building. On second appeal, the Hon’ble ITAT observed that terrace of the building cannot be considered as distinct and separate but certainly is a part of the house property. As regards the observation of the CIT (Appeals) that the rental income received by the assessee is in the nature of compensation for providing services and facility to cellular operators, the Hon’ble ITAT observed that the department has failed to bring on record any material to demonstrate that in addition to letting-out space on the terrace for installation and operation of antenna, the Assessee has provided any other service or facilities to the cellular operators. Further, in no other assessment year, the Assessee’s claim of offering such income as house property income has been disturbed by the Assessing Officer. Therefore, there being no material difference in facts and applying the rule of consistency, the Assessee’s claim for treating the income as house property income should be considered. Accordingly, the Hon’ble ITAT after considering all materials on record, held that letting-out space on the terrace of the house property for installation and operation of mobile tower/antenna amounts to letting-out a part of the house property itself and consequently, income from said letting out shall be taxable as house property income.