9911796707
TMI Blog2006 (2) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... wealth made on acquisition of land and its related development rights by the assessee." 3. Mr. Ankur Garg, Departmental Representative appeared for the revenue and Mr. K.K. Lalkaka, learned Authorised Representative appeared for the assessee. 4. The brief facts of the case are that the assessee was the owner of a plot of land bearing No. 24/25 in Marol Co-operative Industrial Estate Ltd., wherein it was carrying on its industrial activity. The assessee acquired the development rights of the adjacent plot of land in the form of Floor Space Index (FSI) from Marol Co-operative Industrial Estate Ltd. for a consideration of Rs. 18.00 lakhs. The assessee was allowed to build 4000 sq. ft. on existing adjacent building and was also allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive Industrial Estate Ltd. and after payment of the said sum the assessee became the owner of the said plot of land, which is urban land as defined in Explanation 1 ( b ) of section 2( ea ) of the Wealth-tax Act. The learned DR conceded that the industrial plot owned by the assessee is exempt under section 2( ea ) of the Wealth-tax Act,but the plot of land for which development rights have been acquired during the year under consideration is includable as wealth in the hands of the assessee. Regarding exemption for two years of unused land held by the assessee for industrial purposes for a period of two years under Explanation 1 ( b ) to section 2( ea ) of the Wealth-tax Act, the learned DR pointed out that land acquired by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Wealth-tax Act. 8. We have heard the rival submissions and perused the records. In the facts of the present case, the assessee was owning the plot No. 24/25 in Marol Co-operative Industrial Estate Ltd. and till as on date the assessee is running an Industrial unit. The assessee acquired the development rights by paying a sum of Rs. 18 lakhs to Marol Co-operative Industrial Estate Ltd. on the adjacent area to its existing plot of land. The assessee was allotted FSI of 4000 sq. ft. by the Marol Co-operative Industrial Estate Ltd. as per its letter dated 20-2-2004 which stipulates as under : ". . . we would like to clarify the position regarding the utilization of the abovereferred to FSI. The sub-station plot attached to your plot No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould be sold to any other person. By acquiring FSI rights in a plot of land, the assessee is acquiring certain rights of making additional construction to its existing building, but as far as the new plot of land is concerned, the total rights in the said portion of land are not transferred to the allottee. The allottee of such portion of land can utilize the same for the specific purpose i.e. , development of garden and open space for parking, but no rights of ownership in the land are acquired by way of this letter of allotment of FSI of 4000 sq. ft. 10. The Rules and Regulations of developments rights are governed by the Development Control Regulations for Greater Bombay, 1991, issued by the Government of Maharashtra, Department of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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