1986 (4) TMI 89

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..... s. 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 Municipal Corporation and kept them in reserve for pu .....

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..... s. 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 .....

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..... tion date according to the provisions 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. .....

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..... consideration thereto was accordingly 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 le .....

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..... ssee, or the firm in which the assessee was a partner, had taken up and, naturally, the flats become more congested. According to Sri Doshi, the distinction between FSI and land is not brought about by ten per cent discount and he suggested that at least 50 per cent must be deducted. Although we are of the view that ten per cent discount is not on the reasonable side, fifty per cent is much too hi .....

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