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[Cites 3, Cited by 2]

Punjab-Haryana High Court

The Commissioner Of Wealth-Tax ... vs D.P.Gupta C/O M/S Liberty Footwear Co. ... on 30 March, 2010

Bench: Ashutosh Mohunta, Mehinder Singh Sullar

    IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH.

                                   WTA No.8 of 2000
                               Date of Decision:-30.3.2010
The Commissioner of Wealth-tax (Central), Ludhiana                          ...Appellant
                                                Versus
D.P.Gupta C/o M/s Liberty Footwear Co. Karnal                              ...Respondent

CORAM:         HON'BLE MR.JUSTICE ASHUTOSH MOHUNTA
               HON'BLE MR.JUSTICE MEHINDER SINGH SULLAR

Present:-      Mr.Krishan Mehta, Sr.Standing Counsel for the appellant.

               Mr.Sanjay Bansal, Senior Advocate with
               Ms.Shaveta Malhotra & Ms.Harpreet Kaur, Advocates for the
               respondent.
Ashutosh Mohunta, J. (Oral)

In the wake of the application by the revenue, the Tribunal referred the matter to this Court to consider the following question of law:-

"Whether, on the facts and in the circumstances of the case and on correct interpretation of clause (e) of section 2 of Wealth-tax Act, the ITAT was right in law in holding that the assessee's share in cash incentive/duty draw back claim receivable is not includible in the net wealth of the assessee?
Having gone through the record and relevant provisions of the Wealth Tax Act (for short "the Act"), we are of the considered view that the amount in question of the share of the assessee in cash incentive and duty draw back did not represent any assets. The amount of cash incentive is a personal reward for promotion of business. Such reward remittance do not fall within the purview of movable or immovable property and cannot possibly be termed as assets as defined under section 2 (e) of the Act, in the obtaining circumstances of the case.
Therefore, the question of law is answered in favour of the assessee and against the revenue. The instant appeal is disposed of accordingly.
(Ashutosh Mohunta) Judge ( Mehinder Singh Sullar) Judge 30.3.2010 AS