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TMI Blog1983 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee that these articles were "personal effects" as defined u/s 2(14)(ii) of the IT Act. On appeal, the AAC accepted the assessee's claim and deleted the addition. It is thus that the matter is in appeal before the Tribunal. 2. According to the ld. counsel for the department, there was no evidence at all to indicate by that these articles were used by the assessee for himself or his family so as to constitute personal effects. The mere fact that they were capable of being used would not be sufficient to bring them within the exemption provided u/s 2(14)(ii). In fact they were purchased in 1970 only and that too, not from a dealer but by way of second-hand articles from a private party. The assessee, according to the ld. counsel, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts should be made having regard to the status of the assessee who is a leading business man and a director in several companies and whose business as a financier also indicated his high social status. Reference is made to certain decision referred to in Kanga and Palkhivala's Income-tax. 4. s. 2(14)(ii) exempts the surplus from the sale of personal effects from the charge of capital gains. The Act, however, does not define what constitutes personal effects, apart from stating that it would include movable property kept for the use of the assessee or his family. The decision cited for the department in G.S. Poddar's case (1965) 57 ITR 207 (Bom) and the decisions referred to by the ld. counsel for the assessee interpret the term as occurrin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal effect of the assessee. A mention of articles like wearing apparel, jewellery, etc., in the section supports our above view. In Black's Law Dictionary, Fourth Edition, at page 1301, the expression is assigned the following meaning: "Personal effects, articles associated with person, as property having more or less intimate relation to person of possessor." Cyclopaedic Law Dictionary, Third Edition, Page 832 refers to "such tangible property as is worn or carried about the person". In Random House Dictionary of the English Language, at page 1075 the expression gives the following meaning: "Privately owned articles consisting chiefly of clothing, toilet items, etc., for intimate use by an individual." The definition in s. 2(14)(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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