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

WTR/4/2006HC Punjab & HaryanaPHHC01085288200630 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 M/s Mahajan Overseas. The firm had claims for cash incentive from the Central Government's Handloom Export Promotion Council. The Wealth Tax Officer included the assessee's share of this incentive in her net wealth. The Commissioner of Wealth Tax ordered its exclusion. The revenue appealed to the Income Tax Appellate Tribunal (ITAT), which dismissed the appeal. The Tribunal also dismissed the revenue's application for referring the matter to the High Court. The revenue then filed a reference application to the High Court of Punjab and Haryana at Chandigarh, challenging the Tribunal's order.

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 Court reasoned that such incentive is a personal reward for promoting handloom exports and does not fall within the definition of movable or immovable property. Therefore, it cannot be termed as an 'asset' as defined under Section 2(e) of the Wealth Tax Act. 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.80,323/- 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: The revenue contended that the assessee's share in the cash incentive was includible in her net wealth. The revenue relied on the Wealth Tax Act, specifically the definition of 'assets'.

Which sections of the Income-tax Act were involved?

Section 2(e)

AI-generated summary — verify with the full judgment below

WTR No.4 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, 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 Overseas, 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 her net wealth. However, the Commissioner of Wealth Tax ordered the exclusion of the aforesaid amount, vi

The order continues below.

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