TMI Blog1993 (8) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... year relevant to the assessment year 1975-76, it sold jewellery and gold ornaments for Rs. 57,089. The sale proceeds were reinvested by purchasing new jewellery and ornaments. According to the assessee, it was entitled to the relief/exemption under section 54C of the Act. But the Income-tax Officer took a different view and worked out capital gains in respect of sale of the said ornaments at Rs. 48,465. The reason why the Income-tax Officer took that view was that the provisions of section 54C apply to individuals only and not to Hindu undivided families. This view of the Income-tax Officer was confirmed by the Appellate Assistant Commissioner in appeal. The Tribunal, however, held otherwise and, therefore, the Revenue moved the Tribunal to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich is contemplated by the section is personal use and, therefore, the assessee contemplated by the section is that assessee who can personally use jewellery. He also drew our attention to the expression "any member of his family" and particularly emphasised the use of the word "his" and submitted that these words also indicate that what was in contemplation of the Legislature was an individual and not a Hindu undivided family. The word "assessee" is defined by the Act to mean "a person by whom any tax or a sum is payable under the Act". The said definition includes other persons also but since that is not relevant for our purpose, we are not referring to that part of the definition. The word "person" is also defined by the Act and it inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in our opinion, enacted by the Legislature with a view to extend the said benefit or relief even if the use was not by the assessee himself but by his family members. The assessee was granted the benefit of exemption not only in respect of jewellery which was in his personal use but also in respect of the jewellery which was held by him but was used by any member of his family provided such member was dependent upon him. In our opinion, the Tribunal was right in extending the benefit of section 54C of the Act to the assessee who is a Hindu undivided family. For the reasons stated above, we answer the question in the affirmative, that is, against the Revenue and in favour of the assessee. Reference is disposed of accordingly. No order as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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