TMI Blog1983 (11) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the assessment year under appeal. It was submitted that the assessee had disclosed these utensils under the Voluntary Disclosure Scheme, 1975 which was accepted by the Commissioner (Appeals). It was claimed before the ITO that silver utensils being the personal effects could not be termed as capital asset and, therefore, there was no question arising of capital gains on sale of them. The ITO rejected the assessee's claim inasmuch as he found that the assessee acquired the silver utensils in 1957 and sold major portion of them after using them for 19 years but there was no reduction of weight. The ITO came to the conclusion that these utensils were never put to use and, therefore, it could not be regarded as articles intended for perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be termed personal effects as such within the meaning of section 2(14) of the Income-tax Act. As held by the Supreme Court in H.H. Maharaja Rana Hemant Singhji v. Commissioner (1976) 103 ITR 61 (SC), an intimate connection between the effects and the persons of the assessee must be shown to exist to render them "personal effects". The very fact that there was not even a single ounce of wear and tear would indicate that there was no intimate connection between the effect and the person of the appellant in the matter of these goods. I also draw support, in this connection, from the decision reported in CWT v. Arti Goenka (1980) 121 ITR 632 (Mad). In my opinion, on the facts and in the circumstances of the case, no interference is called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the members of his family. 5. Under sub-clauses (ii) of section 2(14) capital assets exclude movable property etc. held for personal use by the assessee or any member of his family dependent on him. The Hon'ble Supreme Court in the case of H.H. Maharaja Rana Hemant Singhji v. Commissioner (1976) 103 ITR 61 (SC) has held inter alia 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a little odd that there was no reduction of weight in the silver articles even after normal use of them for as long as 19 years. It is true that the articles are capable of being put to personal and household use but that does not mean to treat the articles as intended for personal or household use. It has been made clear by the Bombay High Court in the case of G.S. Poddar v. Commissioner (1965) 57 ITR 207 (Bom) that the mere possibility that the articles are capable of being put to a personal or household use would not be sufficient to treat them as intended for the personal or household use. The Madras High Court has reiterated the same view in the case of CWT v. Arti Goenka (1980) 121 ITR 632 (Mad). The case of H.H. Maharani Usha Devi i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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