TMI Blog2022 (5) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... mittedly, the assessee has cash in hand of Rs.1,41,65,793/-. As per the Wealth Tax Act, Section 2(ea) i.e., definition of assets in relation to assessment year commencing on the 1st day of April 1993 or any subsequent assessment year means (vi) cash in hand, in excess of fifty thousand rupees, of individuals and Hindu undivided families and in the case of other persons any amount not recorded in the books of account We noted that assessee is an individual and this cash in hand is kept in the capacity of individual and not kept as cash in books of accounts. As per the definition of section 2(ea)(vi) of the Act, the excess cash in excess of rupees fifty thousand will be treated as asset and will be included in the net wealth of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of the AO by observing as under:- It is clear from the statute that cash in excess of Rs.50,000/- is required to be considered as an asset for the purposes of Wealth Tax while computing the net wealth in the case of Individuals and Hindu Undivided Families. The appellant tried to argue that the cash on hand in his case is required to be treated as business asset, and therefore, exempt from wealth tax relying on the ITAT decision in the case of Surendra Pal Singh (supra). However, I find that the Hon ble High Court of Kerala in the case of CWT vs K.R. Ushasree (332 ITR 75) (Ker) declared as follows: While cash in hand in excess of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ily cash sales clocks in an average of Rs.1.5 crores. According to assessee, he has availed overdraft facility from Indian Bank, T.Nagar Branch against the security of current asset, mainly of stock in trade with the condition that the realization of sale proceeds is to be deposited with them. According to assessee, neither the AO nor the CIT(A) understand the concept of substance over form . It was contended that cash is held as cash in hand which is technically a mere change in form of stock which was held in hand, which was pledged against OD facility with Indian Bank, T.Nagar branch. We noted that the assessee may be having big retail chain of business but assessee is an individual. Admittedly, the assessee has cash in hand of Rs.1,41, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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