Law:

Section:

Section 2(ea) of the Wealth-Tax Act, 1957 - Assets Cash-in-hand in excess of Rs. 50,000 in hands of individuals and HUFs forms part of asset under section 2(ea)(vi ) [In favour of revenue] While cash in hand in excess of Rs. 50,000 has to be treated as an "asset" of the individuals and HUFs, any cash in hand in case of other persons, namely, companies, not recorded in the books of account is an asset. There is no provision in the definition clause or in any other section of the Act authorizing the WTO to exclude cash in hand if it is found to be productive asset. Once the statute identified non-productive assets for the purpose of assessment in the definition clause, there is no scope for any adjudication as to whether any such asset is productive warranting exclusion. In fact, the Parliament deliberately brought to tax cash in hand in the case of individuals and HUFs for the purpose of levy of wealth-tax in excess of the limit of Rs. 50,000 by treating it as non-productive asset. Therefore, the argument that cash in hand of businessmen should be treated as productive asset also is meaningless. JUDGMENT C.N. Ramachandran Nair, J. : These connected wealth-tax appeals are filed by the Revenue against the order of the Tribunal holding that cash in hand in excess of Rs. 50,000 in the hands of the assessees who are all individuals, does not form part of the asset under s. 2(ea)( vi) of the WT Act. We have heard senior counsel Sri P.K.R. Menon appearing for the appellants and various counsel appearing for the respondents. 2. All the respondent-assessees are individuals who have, in the books of accounts, cash in hand on the valuation date, in the case of some of the assessees, above Rs. 30 lakhs, in some cases above Rs. 50 lakhs and in few cases it is above a crore of rupees and in one case cash in hand held by an individual assessee is as much as Rs. 2.6 crores. According to the assessees all of them are engaged in business and the cash in hand is nothing but business asset which is a productive asset not forming part of asset as defined under the provisions of the WT Act, 1957. Since the sole question pertains to scope of meaning of s. 2(ea)( vi) of the Act, we…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492