Alastair Leggate, from Hamilton, built the structure in 2019. He used it to house two pigeons, which were given as a gift by a friend.
However, in January the local council said they received complaints regarding a “large structure” in his garden.
In total the shed received 11 anonymous complaints, though nobody has objected to Mr Leggate in person.
Earlier this month he was told planning permission has been granted for the structure.
In response Mr Leggate hung a banner over the shed, facing outside, which read: “Great News Permission Granted.”
The provocative caption was accompanied by a painted smiley face.
Mr Leggate revealed his reaction to being challenged by the council, to the Daily Record.
He explained: “I said ‘I hadn’t built a large structure, it’s the same shed’.
“So, I had to go for planning permission for the shed which just seemed to be absolutely ridiculous.
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He learned planning permission had been granted last week, whilst on holiday in Blackpool.
The shed owner commented: “We were down in Blackpool for five days and it was actually a neighbour who told us that the council had given us permission to keep the shed because they got a letter.
“So, I thought ‘straight up the road and I’ll put up that sign’.
“The sign was a bit of tongue in cheek because I don’t know who complained. If someone had come to the door I would have compromised but it’s just ridiculous.
“Since I’ve put up the sign, I’ve had someone come to the door and give me flowers for my wife because it cheered them up when they saw it.
“We’ve had people walking by shouting over the wall ‘well done’ and cars driving by to take pictures and beeping the horn. It’s just gone mental.”
Mr Leggate caught coronavirus during the pandemic, and was put on furlough.
He admitted the banner was partly motivated by the events of the past two years.
The cheeky owner added: “I was thinking this is the last thing we need, hassle over a shed. People have even come by now and said it’s great to see your birds back out because I’d been trying to keep them inside for a while through this.
“The sign is just a wee bit of happiness after the time we’ve had over the last two years.
“We don’t need to be complaining about each other, it’s just nonsense.”