COMMISSIONER OF WEALTH TAX, HR. ROHTAK vs. KAMAL SAROJ

WTR/7/2006HC Punjab & HaryanaPHHC01085291200630 March 2010Author: MR. JUSTICE ASHUTOSH MOHUNTA,MR. JUSTICE M.S. SULLAR2 pages
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What were the facts?

The assessee, Smt. Kamal Saroj, was a partner in the firm M/s Mahajan House. The firm had claimed a cash incentive from the Central Government for export promotion. The Wealth Tax Officer included the assessee's share of this incentive in her net wealth. The Appellate Assistant Commissioner, however, ordered its exclusion. The Income Tax Appellate Tribunal dismissed the revenue's appeal against this order. The revenue's application for referring the matter to the High Court was also dismissed by the Tribunal. The revenue then filed a reference to the High Court of Punjab and Haryana.

What did the High Court hold?

The High Court held that the assessee's share in the cash incentive and duty drawback did not represent any assets. The incentive was considered a personal reward for promoting handloom exports by the Handloom Export Promotion Council. Such remittances do not fall within the definition of movable or immovable property and cannot be termed as assets under Section 2(e) of the Wealth Tax Act. The Court noted that the total wealth tax liability was meagre. Therefore, the question of law was answered in favour of the assessee and against the revenue. The reference was disposed of accordingly.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Tribunal was right in law in holding that the assessee's share in cash incentive amounting to Rs.16,178/- due to the firm M/s Mahajan Overseas, Panipat from the Central Government Handloom Export Promotion Council was not liable to wealth tax? Assessee's contentions: Not recorded. Revenue's contentions: Not recorded. The judgment states that the parties' counsel were heard and the case file was perused, but it does not detail their specific arguments.

Which sections of the Income-tax Act were involved?

Section 2(e)

AI-generated summary — verify with the full judgment below

WTR No.7 of 2006 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.

Date of Decision:-30.3.2010 The Commissioner of Wealth-tax, Haryana, Rohtak ...Petitioner Versus Smt.Kamal Saroj, Mahajan House, Panipat ...Respondent CORAM: HON'BLE MR.JUSTICE ASHUTOSH MOHUNTA HON'BLE MR.JUSTICE MEHINDER SINGH SULLAR Present:- Mr.Krishan Mehta, Sr.Standing Counsel for the petitioner.

Mr.Sanjay Bansal, Senior Advocate with Ms.Shaveta Malhotra & Ms.Harpreet Kaur, Advocates for the respondent.

Ashutosh Mohunta, J. (Oral)

The brief facts, relevant for disposal of present case and emanating from the record are that the assessee was a partner in the firm M/s Mahajan House, which had made certain claims of cash incentive to the Central Government in the matter of Export Promotion Council. The Wealth Tax Officer included the amount equal to the assessee's share as its net wealth. However, the Appellate Assistant Commissioner of Income Tax ordered the exclusion of the aforesaid amount, vid

The order continues below.

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