Cash incentive and duty draw back were held outside the wealth-tax asset definition because they were not property.

An assessee's share in cash incentive and duty draw back was held not to fall within the definition of "assets" under section 2(e) of the Wealth-tax Act, 1957. The court treated the cash incentive as a personal reward for promotion of woollen mills and held that, on the facts, it did not amount to movable or immovable property. As a result, the receipt could not be brought to wealth-tax as an asset. The principle applied was that a personal incentive receipt, absent the character of property, is outside the statutory asset definition.

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Issues: Whether the assessee's share in cash incentive and duty draw back constituted "assets" within the meaning of section 2(e) of the Wealth-tax Act, 1957.

Analysis: The amount received as cash incentive was treated as a personal reward for promotion of woollen mills. Such receipt was held not to amount to movable or immovable property and, on the facts of the case, did not fall within the statutory definition of assets under section 2(e) of the Wealth-tax Act, 1957.

Conclusion: The question was answered in favour of the assessee and against the revenue.

Final Conclusion: The reference was disposed of by holding that the assessee's share in cash incentive and duty draw back was not taxable as an asset under the Wealth-tax Act, 1957.

Ratio Decidendi: A personal incentive receipt which does not constitute movable or immovable property cannot be treated as an asset within section 2(e) of the Wealth-tax Act, 1957.

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