TMI Blog2012 (10) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment 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. Appeal decides in favour of revenue - WTA No. 20/PN/2010 - - - Dated:- 19-7-2012 - Shri I.C. Sudhir and Shri R.K. Panda, JJ. Assessee by : Sri M.K.Kulkarni Respondent by : Sri Alok Mishra ORDER Per R.K. Panda, AM This appeal filed by the assessee is directed against the order dated 04-03- 2010 of the CWT(A)-I, Pune relating to assessment year 2006-07. 2. Facts of the case, in brief, are that the assessee is engaged in the business of sale of lottery tickets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment was only a custodian of the same till the tax liability of the assessee was discharged. The AO was of the opinion that the original return of income filed by the assessee showing cash in hand as his asset chargeable to tax was proper. Accordingly, the claim of the assessee that cash seized in possession of the department was not subject to wealth tax was rejected by the AO who adopted the gross wealth as per original return of wealth filed. While computing the net wealth, the Assessing Officer gave credit for the tax liability for the block period amounting to Rs. 65,34,498/- and net wealth was assessed at Rs. 1,13,74,000/-. 4. Before the CIT(A), it was submitted that as per definition of Assets under section 2(ea) (vi), cash in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the property of a person or that which is in his possession as of right is liable to wealth tax. Liability to wealth tax arises out of ownership of asset and not otherwise. It was argued that mere possession or joint possession unaccompanied by the right to, or ownership of, property would not be the property within the definition of net wealth as it would not be an asset belonging to the Assessee. It was submitted that the seized amount of Rs. 1.71 Crore became the property of Income Tax Department, at least to the tune of assessable taxes, penalties etc. and upto the period of finalization of block period assessments. During the said period, the assessee had no control over ownership of and right to use this amount as per his sweet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision under the I.T. Act for confiscation of assets seized, therefore, he was of the opinion that the cash seized is asset belonging to the assessee and is chargeable to Wealth Tax as on the valuation date. For this proposition he relied on the decision of the Hon ble Madhya Pradesh High court in the case of CWT Vs. Meghji Girdharilal reported in 176 ITR 63 and the decision of the Hon ble Supreme Court in the case of Sri Nawab Sir Mir Osman Ali Khan Vs. CWT reported n 162 ITR 888. 7. Aggrieved with such order of the CWT the assessee is in appeal before us with the following grounds : 1. On the facts circumstances of the case in law the Ld. CWT(A) was not justified in confirming the assessment order of the WTO where the cash balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We are of the opinion that the arguments advanced by the learned D.R. merits consideration. We find the provisions of section 2(m) read as under : 2(m) net wealth means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owned by the assessee [on the valuation date which have been incurred in relation to the said assets;] In the instant case admittedly the money which was seized by the Police from the assessee was transferred to the P.D. account of the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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