When you threaten somebody, your plan is to kick their ass. If you beat them, you can say "I owned his ass!" For handing someone their ass, the idea is this: not only do you own their ass (as in "possess" it), but the person suffers the indignity of having to receive something that is already theirs. As my colleagues have pointed out, it indicates a sorry defeat.
And here's a cartoon:
www.angryflower.com/realas.html