1983 (12) TMI 78

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..... " Desert spoons 48 " " Coffee spoons 112" . Coffee set consisting of 48 cups, 48 saucers, 4 coffee pots, 4 sugar pots, 4 milk pots 4 Trays. 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. .....

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..... sed as such. The fact that these articles were stated in the Voluntary Disclosure as articles for personal use by the assessee, was also used in support of the above contentions. He argued that it was not necessary that the articles should be used frequently 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 .....

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..... a limited extent as personal effects. The number of articles in the list is such that not all of them could possibly have intimate connection with the person of the assessee. The Tribunal in Smt. Sitadevi's case has taken into account the nature of the utensils 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 .....

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