TMI Blog2002 (7) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as an adventure in the nature of trade and hence deleting the addition of ₹ 78,540. 3. We have heard the rival submissions in the light of material placed before us and precedents relied upon. A sum of ₹ 1,00,000 was credited into the Bank Account of the assessee on 26-8-1991. This was stated to be realised from the sale proceeds of four paintings. The said paintings were disposed of in favour of Shri N.D. Sidhwa as under: Oil Painting 36 X41 Landscape with Shrin by Badri Narayan ₹ 10000 Oil Painting 26 X34 View from window by J. Sabavala 50000 Oil Painting 48 X36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature of trade, commerce or manufacture occurring in the definition of business in section 2(13) of the Income-tax Act, 1961 (hereinafter called the Act) has itself not been defined in the Act. It is therefore not easy to discern the circumstances which will make a transaction an adventure in the nature of trade. It is not possible to evolve any single test or formula which can be applied in determining whether a transaction is an adventure in the nature of trade or not. The answer to the question must necessarily depend in each case on the total impression and effect of all the relevant factors and circumstances proved therein and which determine the character of the transaction. Where the purchase is made solely with an intention t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be adventure in the nature of trade. We have perused the reasoning adduced in the impugned order. We are inclined to agree with the same on this count. 8. The next question is whether paintings could be construed to be articles of personal effects. As per the prescription of section 2(14)(ii) of the Act, personal effects, that is to say, movable property (including wearing apparel and furniture, but excluding jewellery) held for personal use by the assessee or any member of his family dependent on him. The meaning of personal effect is not exhaustively defined in the Act. It only refers that movable property held for personal use by the assessee or any member of his family dependent on him can be construed as personal effect. Movable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctures were held to be articles of personal effects. The Apex Court in the case of H.H. Maharaja Rana Hemant Singhji v. CIT (1976) 103 ITR 61 has said that an intimate connection between the effects and the person of the assessee must be shown to exist to render them personal effects within the meaning of that expression used in clause (ii) of the exceptions in section 2(4A) of the Indian Income-tax Act, 1922. The Legislature intended only those articles to be included within the expression personal effects which were intimately and commonly used by the assessee. 11. The paintings were used to decor the house. Assessee loved paintings. A good painting transmits good vibe across. The element of personal attachment with the object did ..... X X X X Extracts X X X X X X X X Extracts X X X X
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