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2011 (7) TMI 512 - AT - Income TaxSale of paintings - Capital asset chargeable to capital gain - Revenue applied a restrictive test Held that:- There appears to be an incorrect test applied by revenue because all personal effects need not be used daily - So long as they are meant for personal use, they will have to be considered as personal effects - Thus the sale of old paintings, inherited by assessee, does not fall in the mischief of section 2(14)(ii) of the Act i.e. in the definition of capital asset and does not attract capital gains tax prior to amendment brought by Finance Act, 2007 with effect from 1-4-2008 - Decided in favour of assessee. Deemed income from house property - AO deputed his Inspector to ascertain annual value of the house property, who reported after verification in the locality that this property may fetch a rent of Rs. 15,000 to Rs. 20,000 per month & AO accordingly estimated the annual value of the property at Rs. 1.80 lakhs and assessed income from house property at Rs. 1.26 lakhs - Held that:- The assessee fairly agreed that the estimation made is higher and he has not contested that the deemed annual value is not to be adopted for rental purposes - Decided against the assessee.
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