1986 (4) TMI 89

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.... some facts before mentioning about the grounds. This is the individual wealth-tax assessment of the assessee. He was a partner in a firm called Tejumal Hermraj and others wherein he has 15 per cent share. This firm, Tejumal Hemraj and others, is engaged in the business of development of land construction of flats at Versova. Certain lands belonging to this firm were acquired by the Bombay Municip....

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.... credited to the assessee's capital account Rs. 1,50,000. The remaining FSI of 15,750 was with the assessee. 4. The assessee valued the FSI as follows: I 16,500 sq. ft. contributed to Mahavir Corporation @ Rs. 9 per sq. ft. II 13,250 sq. ft. was valued at Rs. 20 per sq. ft. III 2,500 sq. ft. was valued at Nil . 32,250 sq. ft. . 5. The WTO fixed the rate of the FSI at Rs. 30 per sq.....

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....visions of s. 7, WT Act. It was stated that FSI is not a transferable asset and that its transfer is prohibited by law. Merely because transfer is not permitted, it cannot be said that the right has no value. Contributing 16,500 sq. ft. of FSI to Mahavir Corporation as his capital, the assessee has derived an interest in the firm. The firm gave credit by a sum of Rs. 1,50,000 in consideration of t....

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....dingly utilised by the assessee in the constructions made in H & K Wards of Khar and Bandra where the demand is indisputably high. The WTO observed that the prevailing rate in Khar and Bandra was between Rs. 300 to Rs. 350 per sq. yd. He preferred to adopt the lowest of fix it at Rs. 30 per sq. ft. It was not contended before us that the rate of Khar and Bandra is less than Rs. 300 per sq. yd. Wit....