whether the term 'house' which is not defined in the Estate Duty Act or in the Wealth-tax Act, would include land whcih is appurtenant to the house. - Income Tax - 758/CBDT

INSTRUCTION NO . 758/CBDT Dated : September 11, 1975 Section(s) Referred: 33(1) and 33(1)(n) of ED Act , 5(1) and 5(1)(iv) of WT Act Statute: Estate Duty Act In terms of section 33(1)(n) of the Estate Duty Act and section 5(1)(iv) of the Wealth-tax Act, value of a house certain conditions specified in those sections. A question carose whether the term 'house' which is not defined in the Estate Duty Act or in the Wealth-tax Act, would include land whcih is appurtenant to the house. The Board examined the question and found that it would be difficult to say that the land. Which was appurtenant to a house and which was reasonably necessary for its enjoyment should not be treated as part of the house. The scope of the term 'house' and how it would include certain portion of adjoining land used for packing vehicles or for a gerden or for proper use and enjoyment of the house was explained in Board's Instruction No. 443 dated 2-8-72. 2. Instruction No. 443, however, left open the question as to the extent of land whcih can be said to be reasonably necessary for enjoyment of a house or is appurtenant to a house. The Board recently considered this matter and feel that the following guidelines may reasonably be followed for determining the extent of land which is appurtenant to a house and for valuation of land which is found to be not appurtenant:- (i) Where the vacant land surrounding a house does not exceed the minimum land required to be left vacant according to municipal bye-laws in force in the place no portion of the vacant land can be regarded as not being a part of the house itself or appurtenant to the house. (ii) Where the open land exceeds the limit specified in the municipal bye-laws as mentioned in (i) above. (a) Such land should be considered as being a part of the house appurtenant thereto if according to the municipal bye-laws, a separate tenantable unit cannot be constructed thereon; and (b) In cases where a separate tenantable unite can be constructed on such land, such land can be considered as not appurtenant to the house and the matter regarding its valuation may be referred to the Valuation Cell. 3. These instructions may please be brought to the notice of all the assessing officers in your charge.