I have query regarding the House Property. Where a building is demolished which was used for residence, what it should be termed a residential house or plot?
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 24 April 2017
building is a super structure on land when demolished there is no super structure it is a land
Jyoti
(Student CA Final )
(23 Points)
Replied 25 April 2017
Thank u Sir. Can u let me know if there is any specific case law relating to it?
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 30 April 2017
In CIT vs Union Co (Motors) Ltd (2006) 283 ITR 445 (Mad) the assessee sold land with building with a condition that the purchaser would demolish the super structure .The Court held that the consideration for transfer apparently relates to land and the building had no value and also got demolished by the vendee .the building though waa subjected to depreciation earlier ,the consideration received on transfer was held as attributable only to land and nothing towards building.
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