Web Development – Part of IT?

I have an interesting situation with a new web development position we are hiring for. We are a small company so many of us wear multiple hats. After fighting for the approval to get a person hired for the IT department to help develop our website, I am suddenly informed that this person will not be reporting to me but to another team that works on analytical software development, based on the fact that it is software (web) development, and that should not be part of IT. Am I being power hungry or does software development fall under a different department other than IT?

Samuel