Law: Income Tax Act, 1961

Section: 54

Income-tax---Capital gains---Exemption---Sale of building and land appurtenant thereto and construction of another building for residence ---Meanin of â-ž and appurtenant thereto"---She of property more than twenty years back--¬Property situate at a distance from city---Finding that entire extent of land adjoining residence was used as pathways, servant quarters, etc.---Entire land was appurtenant to building---Indian Income Tax Act, 1961, S-54. The question whether certain land is appurtenant to a house is one of fact. The following five tests can be applied to understand the meaning of the words "land appurtenant" more precisely: (1) If the building together with the land is treated as an indivisible unit and enjoyed as such by the persons occupying the building, it is an indication that the entire extent of land is appurtenant to the building; (2) if the building has extensive lands appurtenant thereto and even if the building and the land have been treated as one single unit and enjoyed as such by the occupiers, an enquiry could be made to find out whether any part of the land contiguous to the building can be put to independent user without causing any detriment to the enjoyment of the building as such. Such an enquiry should be conducted not based on any artificial considerations but from the point of view of the persons occupying the building. The number of persons or different branches of families residing in the building, the requirements of persons occupying the building, consistent with their social standing, etc., are relevant for the purpose. If any surplus is arrived at on such enquiry, then the extent of such surplus land may not qualify to be treated as land appurtenant to the building; (3) if there is any evidence to indicate that any portion of the land contiguous to the building was applied to user other than the enjoyment of the building, then that provides a safe indication regarding the extent of land applied for such user. For instance, the land used by the occupiers for commercial or agricultural purpose although forming part of the land adjacent to the building, does not qualify to be treated as land appurtenant to the building; (4) if…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492