TMI Blog2016 (6) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is no finding of any of the lower authorities as to the amount of cash of the various entities. In such a situation, we are of the view, that the issue needs to be re-examined at the end of AO. AO is directed to consider the cash as wealth of the assessee in accordance with law and only to the extent of the cash as at the close of year that belongs to the assessee. We therefore remit the issue to the file of AO to decide the taxability of cash as wealth as noted herein. The assessee is also directed to co-operate by promptly furnishing all the details called for by the authorities. - Decided in favour of revenue for statistical purposes. - WTA Nos. 3 to 6/Ahd/2014, CO Nos. 229 to 232/Ahd/2014 - - - Dated:- 31-5-2016 - Shri Anil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -03- 2006 1,86,78,8867 As on 31-03-2007 Assessment year 2004-05 2005-06 2006-07 2007-08 2.2. The AO was of the view that since the assessee had admitted before Settlement Commission the availability of cash and the cash balances in the each of the years were in excess of ₹ 50,000/-, the cash balance in excess of ₹ 50,000/-was an asset in view of provisions of section 2(ea)(vi) of Wealth Tax Act, 1957 and, therefore, the AO had reason to believe that wealth chargeable to tax has escaped assessment for AYs 2004-05 to 2007-08. He accordingly issued notice u/s.17 on 22/03/2011 requiring the assessee to file the return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has also been noted by the Hon'ble Settlement commission in the settlement order. Section 2(ea)(vi) stipulates that the cash exceeding ₹ 50,000/-, not used for business has to be considered for the purpose of computing wealth tax. In the case of A. A. Salam v/s ACWT, Cir.1. Kollam [20071 13 SOT 446 (Cochin), it was held that government was keen on stimulating the investment in 'productive assets'. The 'productive assets' has been defined as shares, securities, mutual funds and 'non-productive assets' has been defined as residential house, jewellery, car not used for commercial purpose. Therefore, the assets which are used for commercial purposes are 'productive assets' and assets which are not use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at productive asset do not attract Wealth Tax though there is no provision in the definition clause or in any other section of the Wealth Tax Act authorizing the WTO to exclude cash in hand if it is found to be productive asset as supported by the decision of High Court of Kerala in the case of Commissioner of Wealth Tax vs. Smt. Ushasree reported in 229 CTR 52 (Ker) (2010) 3. The appellant craves leave to add to, amend or alter the above ground as may be deemed necessary. 2.4. On the other hand, the assessee has raised following grounds in its Cos: (Cross Objection No.229 to 232/Ahd/2014):- 1. On the facts and in the circumstances of the case, The Ld CIT(A) has erred in considering the action of Assessing Officer in Reopeni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;ble Settlement commission in its order. 4. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of the appeal. 3. We first take up Revenue s appeal. 4. Before us, ld.DR submitted that the cash found was admitted by the assessee in the Settlement Petition filed before Settlement Commission, Mumbai. Since the cash found was in excess of ₹ 50,000/-, being the limit prescribed under Wealth Tax Act, 1957, the excess amount of cash was rightly treated by the AO as the wealth of the assessee. He further submitted that the ld.CWT(A) had relied on the decision in the case of A.A.Salam vs. ACWT reported in (2007) 13 SOT 446 (Cochin). He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused the material available on record and gone through the orders of the authorities below. It is an undisputed fact that during the course of search operations carried out on 03/04/2008 in the group cases of Shri Rameshbhai Shah, along with certain documents, laptop containing the digital data regarding transactions of 65 groups entities were found. Out of the 65 groups entities, 31 entities were partnership-firms of the group while remaining 34 entities have been owned by the assessee. It is also a fact that the laptop contained transactions pertaining to period prior to 01/04/2002 of these 65 entities. It is also a fact that the assessee had offered ₹ 6.50 crores as income of the entire group in the statement recorded u/s.132(4) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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