S. 54F Value of entire land appurtenant to building purchased cannot be considered for exemption

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1. vswami says:

   Add-on(to share more thoughts):

   The media lately reported (February 2013), – “Modified DTC bill likely to come out soon, says Shome”. It was over 3 weeks ago that he said so, but the fate or timing of its enactment still remains shrouded in suspicion.

   In the last seen text, one remembers to have made a note of the following changes in relation to the areas of controversy spoken of above:

   Briefly stating:

   1.The derivative expression “agricultural purposes” is slated to undergo a significant change, through simplifying the definition of the term “agricultural land”.

   2.“Farm house’” is to be specially defined, seemingly aimed at clarity.

   3.“House property’is to be specially defined; however,disappointingly,leaving the controversy over the concept of “appurtenant” intact, as until now.

   Pending enactment of the DTC, had these, so also at least some of the other like changes , been thought of and were to have been introduced, in the interim, but retrospectively, in the forthcoming Budget itself, that would hopefully have helped in crying a halt to the otherwise attendant but avoidable litigation.

   One has no choice, except to wait and watch !

     Reply

   February 26, 2013 at 5:44 pm
2. vswami says:

   It is observed that, the assessee (appellant)’s pleadings for supporting the claim for tax exemption under section 54B have been rejected mainly on, besides others, the ground that “we are not inclined to think that the finding of fact rendered under section 54b is perverse”. The finding is that the subject farm land had not been proved to meet with requirement of user for ‘agricultural purposes’.
   On this aspect, attention may be drawn to the expert commentary in Palkhivala’s leading text book on income-tax and case law cited- ref. page 109 of the ninth edition, vol.1; also briefly dealt with in page 127 of published article – 153 Taxman 126 (Mag). It calls for a special noting, -the controversies with differing hues and shades have been repeatedly taken to courts, but judicial views are mutually varying, hence left with no scope for a definitive conclusion.
   As to the dispute stemmed on the concept of ‘appurtenant’ as embodied in the enactment, in the absence of any special definition n the Act, one has to necessarily look for guidance in the material galore in public domain
   @links e.g. –

   >What is APPURTENANCE? – Black’s Law Dictionary ;

   >appurtenances legal definition of appurtenances. appurtenances …

   So much so, litigation of this kind can only be expected to go on and on, forever.

   Even so, as always, over to the enlightened readers,at best for a further academic study.

     Reply

   February 26, 2013 at 8:07 am
3. Sathyan H M says:

   Dear Sir,
   I just wanted to confirm whether it is LAND ‘APPARENT’ to building or LAND ‘APARTMENT’ to building?

   Regards,
   Sathyan H M

     Reply

   February 25, 2013 at 11:36 am
4. Hemant Pal says:

   Sir,

   Could you plz tell me if one can show and include property registration amount ( 5% of total value-Bangalore) in current yrs income tax as I did not avail the tax benefit 2 years back when I registered my property in 2010.

   Regards
   Hemant

     Reply

   February 25, 2013 at 10:30 am