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2017 (11) TMI 237 - AT - Wealth-taxAdditions of cash in hand held and recorded in regular books of accounts and shown in the business balance sheet of the appellant - meaning of assets as defined in Section 2(ea) of the Wealth Tax Act - Held that:- Having carefully examined the orders of lower authorities in the light of rival submissions, we find that the assessee is an individual and filed its return of income in the capacity of individual, though he has been doing his own business. Provisions of section 2(ea)(vi) of the Act clearly states that cash in hand in excess of ₹ 50,000 of individuals & HUF is an asset and in the case of others, any amount not recorded in the books of account is an asset. Provision in the Act which says that cash in hand recorded in the books of account of individual’s business is not an asset. In the Act, a classification is made between the individual, HUF and other persons. Admittedly, the assessee is an individual, therefore, the provisions laid down for an individual would apply. According to the provisions of section 2(ea)(vi) of the Act, any cash in hand in excess of ₹ 50,000 is an asset. It is irrelevant whether the individual is doing business or not. The argument of the assessee that cash in hand is recorded in the books of account of the business of assessee is a productive asset, therefore it cannot be chargeable to wealth-tax, has been examined by the Hon’ble Kerala High Court in the case of CWT v. Smt K.R. Ushasree (2009 (7) TMI 834 - Kerala High Court) in which held that there is nothing that stops the assessee from utilizing the cash in hand which may be the business asset on the valuation date for any non-productive purpose on the next day. Therefore the argument of assessee that cash in hand of businessmen should be treated as productive asset also is meaningless. - Decided against assessee.
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