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Assessment of capital gains on the sale of silver utensils claimed as personal effects. Analysis: The case involved the assessment of capital gains on the sale of silver utensils by the appellant, who claimed them as personal effects. The appellant was a minor until the assessment year in question and had disclosed the silver utensils under the Amnesty Scheme. The Assessing Officer rejected the claim, citing various grounds, including the intimate and common use requirement for personal effects, the timing of the sale after disclosure, and discrepancies in the family's social status and expenses. The Assessing Officer assessed capital gains, which was upheld by the CIT(A). The appellant contended that the silver utensils were personal effects and thus not subject to capital gains tax. Legal precedents from the Bombay High Court, Kerala High Court, and other tribunals were cited to support this argument. The appellant emphasized that occasional use suffices for an item to qualify as a personal effect and challenged the findings based on the family's circumstances and the timing of the sale. Upon careful consideration, the Tribunal noted the nature of the utensils and the family composition but ultimately rejected the appellant's claim. The Tribunal observed that the sale of a significant portion of the silver utensils soon after disclosure, without replacement for special occasions, indicated they were not personal effects. The Tribunal found the circumstances did not support the claim that the silver utensils were personal effects, upholding the revenue authorities' decision. In conclusion, the Tribunal dismissed the appellant's appeal, affirming the assessment of capital gains on the sale of the silver utensils. The Tribunal emphasized the duty of the revenue authorities to investigate potential misuse of the Amnesty Scheme and found the appellant's claim regarding the nature of the utensils insufficient to escape the levy of capital gains tax.
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