1981 (8) TMI 146

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....ing relief under section 54 of the Income-tax Act ("the Act"). 2. The assessee is an individual. In the previous year relevant to the assessment year 1975-76, the assessee sold a building situate on 6 1/2 grounds of land for a sum of Rs. 1,52,000. Since he purchased a residential flat subsequently, he claimed that the capital gains arising from the sale of the property should be set off against....

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.... therefore, the entire land surrounding the building had to be treated as appurtenant and the entire capital gains had to be allowed to be set off under section 54. 3. In this appeal, the only point pressed on behalf of the revenue is that the norms for appurtenant land set down in the land ceiling legislation should be applied to ascertain the appurtenant land that could be allowed for grantin....

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....word 'or' indicates that even if the land alone is transferred the provision of this section would be applicable and in that context whether the land is appurtenant could only mean whether it is contiguous to the building or not and not whether it was essential for the enjoyment of the building. This is because if it were so essential it could not be carved out and sold separately as envisaged by ....