9911796707
TMI Blog2012 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... -07-2005 during which, interalia, cash of Rs. 1,71,72,012/- was seized by them. Consequent to issuance of warrant u/s.132A of the I.T. Act, the seized cash/documents were handed over to the Income Tax Department. The assessee filed his return of wealth declaring taxable wealth of Rs. 1,13,74,000/- on 18-04-2007. However, the assessee subsequently filed a revised return of wealth on 03-12-2007 wherein the net wealth chargeable to wealth tax was disclosed at Rs. 8,50,913/- after excluding the cash requisitioned by the Department u/s.132A post the search operations by the police authorities. 3. During the assessment proceedings, on being confronted by the AO for such exclusion of the seized cash it was submitted that once the cash was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 1.71 Crore on 25-07-2005 and deposited the same in Bank in P.D. Account of the CIT, therefore, it lost its character of Cash in hand and therefore, the same cannot be charged to wealth tax in the hands of the assessee as only "Cash in Hand" of the assessee is treated as an asset and balance in bank account will not be treated as an asset as per charging section of Wealth Tax Act. Referring to the provisions of the Wealth Tax Act, it was submitted that wealth tax is leviable only on six assets mentioned in the Charging Section of the Wealth Tax Act and that too only when they belong to Assessee. If the asset has been spent, lost, destroyed or transferred by the assessee before the valuation date, it is not held by the assessee on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Wealth Tax Act and was of the opinion that the assets which fall within the definition of assets and belonging to the assessee as on the valuation date are chargeable to Wealth Tax. He observed that one of the assets included in the definition of assets is cash in hand exceeding Rs. 50,000/- as on the relevant valuation date in the case of individuals and HUFs. However, in the case of the assessee cash of Rs. 1,71,72,012/- was seized by the Police authorities on 21-07-2005 which was requisitioned by the department on 25-07-2005 u/s.132(1) of the I.T. Act. Rejecting the argument of the assessee that the cash seized by the department and deposited in the P.D. account of the CIT has lost its character of cash in hand, he came to the conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which balance was in the domain of CIT, Pune in his P.D. Account could not be treated as "Cash in hand". The assessment be vacated. 2. On the facts and circumstances of the case and in law the appellant denies to pay interest u/s.17B of the W.T. Act and it be deleted". 8. We have considered the rival arguments made by both the sides, perused the orders of the authorities below and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. There is no dispute to the fact that cash amounting to Rs. 1,71,72,012/- seized by the Police was subsequently seized by the department and the amount was transferred to the PD account of the lerned CIT. It is the submission of the learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppropriation of due taxes as per the provisions u/s.132B. The money so retained by the department in the P.D. Account of the CIT was not confiscated and was only a mere seizure. Therefore, the assessee in our opinion continues to be the legal owner of the cash and therefore it belongs to the assessee and is includable in his Net Wealth. In this view of the matter and in view of the detailed order passed by the CWT(A) on this issue, we do not find any infirmity in his order. Accordingly, the same is upheld. The various decisions relied on by the learned counsel for the assessee before the CWT(A) which were reiterated before us are distinguishable and not applicable to the facts of the present case. Accordingly, the grounds raised by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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