Taxable head under income tax

Querist : Anonymous (Querist) 18 November 2010 This query is : Resolved
Kindly clarify under what head of income would the hoarding rent received by the Co-operative society be taxed under the Income Tax Act, 1961. Is it Income from house property / Income from Business / Income from other sources. Any caselaw available

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A V Vishal (Expert) 18 November 2010
This question came up for consideration before the Calcutta High Court in Mukherjee Estate (P) Ltd v. CIT (2000) 244 ITR 1. It was decided that the assessee let out the roof for advertisement for hoarding and that the income cannot be considered as income from house property as hoardings do not form part of the building. Such income is chargeable under the head “Income from other sources”. However, if assessee has an agreement to rent his terrace to the party then it would be income from house property but if he has an agreement to rent hoarding or build tower then it will be income from other sources.