9911796707
TMI Blog1983 (12) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 52 " . Assorted Utensils for serving and cooking 3 " . Water Jugs. 790 pcs = 185.300 Kgs. (approx) These details have been supplied to us by the assessee's counsel at the time of hearing. They were purchased in the years 1961 to 1964 for a total amount of Rs. 35,200. The assessee sold this silver ware in the relevant accounting period and the question is whether the difference in the sale price and the purchase price can be brought to tax as capital gains. The difference comes to Rs. 2,05,827. The ITO did not do so but the CIT in exercise of his powers under s. 263 directed him to subject the said sum to capital gains. 2. The CIT has considered a number of decisions of the High Courts and the Supreme Court and also taken into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uently and in support thereof he relied upon the decisions in the case of H.H. Maharani Usha Devi vs. CIT (1982) 133 ITR 43 (MP), Princess Shri Kumari of Krishangarh vs. ITO (1989) 1 ITD 85 (Cal) and Smt. Sitadevi N. Podar vs. Second ITO (1982) 1 ITD 1021 (Bom). 4. The ld. departmental representative on the other hand, relied upon the decision of the Supreme Court in the case of H.H. Maharaja Rana Hemant Singhji vs. CIT 1976 CTR (SC) 188 : (1976) 103 ITR 61 (SC) and the decision in the case of CWT vs. Mrs. Arundhati Balkrishna (1968) ITR 70 203 (Guj) and the decision in the case of CWT vs. Arundhati Balkrishna (1970) 77 ITR 505 (SC). 5. The interpretation of s. 2(14) of the IT Act which is material for our purpose has been made by the Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsils in holding that they were of personal use. This decision therefore, does not lay down that all the silver utensils are to be regarded as of personal use. We are of the view that only those articles which could have this kind of connection can be excluded. The material part of the definition of "capital asset" is as follows: "'Personal effects'......... held for personal use by the assessee or any member of his family dependent upon him." Therefore only those articles which were used by the assessee himself or by any member of his family dependent upon him can be regarded as personal effects. This means that the assessee himself plus the members of his family dependent on him should themselves be using the articles for eating themsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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