The assessee held a plot of land of 4973.125 square feet. It had building of 220 square feet on the plot of land which was even less than 5 per cent. of the total plot of land. Thus, it could not be said that the rest of the plot of land was appurtenant to the building of 220 square feet existing on the plot of land for enjoyment of the building. The assessee had claimed that there was open space which was used for car park, septic tank, garden, etc. These open spaces may be an integral part but certainly these were not required to enjoy the building of 220 square feet on the plot of land of 4973.125 square feet. Both the authorities had concurred that 25 per cent. of the total plot area to be considered land appurtenant thereto. It could not be said that the estimation done by the authorities was perverse or without any reasonable basis.(AY.2013-14)
Maduranthagam Selvaraj Ravi v. Dy. CIT (2020) 77 ITR 6 (SN) (Chennai)(Trib.)
S. 54 : Capital gains-Profit on sale of property used for residence-Purchase of residential house-Land purchased admeasuring 4973.125 square Feet-Building constructed of 150 square feet-only 25 per cent. of total plot area to be considered as land appurtenant thereto. [S. 45]