2003 (1) TMI 26 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the gain of Rs. 11,650 resultinq from the sale of jewellery, precious stones, etc., was not assessable as the business profit? - We find no infirmity in the order of the Tribunal. In the result, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.

Summary

The High Court of Rajasthan ruled that the gain from the sale of jewellery by an assessee Hindu undivided family was not assessable as business profit. The Tribunal found that the item sold was treated as a capital asset, not stock-in-trade, as the assessee was not in the business of jewellery. The court upheld the Tribunal's decision in favor of the assessee.