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2014 (1) TMI 554 - ALLAHABAD HIGH COURTWhether sale of gold bonds and repurchase of new bonds is adventure in the nature of trade - Held that:- At the time of sale of gold in 1980 the Gold Control Act, 1968 was on the statute book which was repealed in the year 1990 by the Gold (Control) Repeal Act, 1990 - The Gold Control Act in order to carry on business of gold and gold ornament required a licence to be obtained under Section 27 of the Act - A restriction was imposed under Section 8 of the Act on the acquisition, possession and disposal of gold without a licence - The gold bonds were purchased and were given as a gift without requiring any conditions of having a licence - The taking of delivering of gold and its sale was under the terms and conditions of the purchase of National Defense Gold Bonds - There was no material to show, nor there was anything on record to demonstrate that the motive of the assessee was to deal in sale and purchase of the gold. The sale of gold bonds approaching the due date of redemption, the repurchase and thereafter sale of the gold was not in the nature of the regular business of the assessee. All the transactions were made taking advantage of the National Defense Gold Bonds 1980, as scheme as per notification dated 19.10.1965, amended on 19.11.1965, and the communiques issued by the Government of India on 22.9.1980 - Decided in favour of assessee.
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