1. An occupancy detection system for detecting occupancy of live objects in a physical location, said occupancy detection system comprising: a memory that stores computer executable instructions, a set of modules and a database; a display unit; and a processor configured by said computer executable instructions, that executes said set of modules, said set of modules comprising: at least one image capturing device executed by said processor, wherein said at least one image capturing device captures image sequences of said physical location; an image processing module, executed by said processor, that obtains a first set of information from said at least one image capturing device at a first time and a second set of information from said at least one image capturing device at a second time, wherein said first set of information comprises an image information on at least one of (a) live objects, (b) stationary object(s), (c) current light levels, and (d) current shadow levels of said image sequences, and wherein said second set of information comprises an image information on at least one of (a) live object, (b) stationary object(s), (c) current light levels, and (d) current shadow levels of said image sequences; an image subtraction module executed by said processor, wherein said image subtraction module subtracts said second set of information obtained at said second time from said first set of information obtained at first time, to obtain an image information on (i) said stationary object(s), and (ii) said live object(s) in said physical location; a motion estimation module, executed by said processor, that estimates a motion of said live object, with at least one of said image capturing device, configured to track motion to obtain an information of said live object(s); a tag detection module, executed by said processor, that identifies tags from said images sequences captured by said at least one image capturing device, to obtain information on said tags which are blocked by said live object(s); and an occupancy determination module executed by said processor, wherein said occupancy determination module collates and compares (i) said image information on said live object(s) obtained from said image subtraction module, (ii) said information of said live object(s) obtained from said motion estimation module, and (iii) said information on tags which are blocked by said live object(s), to determine occupancy of said live object(s) in said physical location.