Are the plates/bowls/glasses made of silver used at home a Capital Asset liable for Capital Gains???
Will there be capital gain tax if those plates/bowls/glasses are sold??
Kindly Quote the tax law also....
10 Replies
Z
( )
(2965 Points)
Replied 30 November 2011
As per decision made in "Sitadevi N. Poddar (Mumbai high court)" , silver utensils used in kitchen or dinning room of the assesse have personal effects and according to explanation of sec 2(14) , moveable assets having personel effect are excluded from definition of capital asset.
No capital asset, No capital gain.
Deepak Gupta
(CA Student)
(15922 Points)
Replied 30 November 2011
| Originally posted by : Rounak Chawla | ||
 |
Are the plates/bowls/glasses made of silver used at home a Capital Asset liable for Capital Gains??? Will there be capital gain tax if those plates/bowls/glasses are sold?? Kindly Quote the tax law also.... |
 |
Items of silverware including dinner plates of different sizes, finger bowls, jugs were held to be personal effects. [CIT v Benarashilal Kataruka (1990) 185 ITR 493 (Cal)].
But at the same time, a large number of the same type of silver articles cannot be treated as having been held for personal use and the assessing authority has to find out as to what are the articles which should reasonably be held by the assessee for personal use. [Ramanathan Chettiar R v CIT (1985) 152 ITR 493 (Mad)].
CA Hardik Bunha
(self)
(2121 Points)
Replied 30 November 2011
Read Section 45(2) with Defination of Jewellery under IT ACt 1961.
It is liable to capital gain tax.
ok if u believe that silver plate is not capital asset the what about gold then what about diamond stiched in plate.............?
Rounak Chawla
(CA Final Student)
(291 Points)
Replied 01 December 2011
thanku all for your help...
but hardik has a very gud question.....kindly help with that also....
Z
( )
(2965 Points)
Replied 01 December 2011
I think that has already been answered
"the assessing authority has to find out as to what are the articles which should reasonably be held by the assessee for personal use. [Ramanathan Chettiar R v CIT (1985) 152 ITR 493 (Mad)]"
Its on AOs discrition
Rounak Chawla
(CA Final Student)
(291 Points)
Replied 01 December 2011
thnx 'Z'....
I finally have a solution to my problm..... thanku all!!
varun rawlani
(CA)
(31 Points)
Replied 01 December 2011
In CIT vs Benarshilal katarika , Honable High court held that silver utensiles which are used for personal perpose and in resonable quanitities will not be capital assets
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 01 December 2011
case law to your query is the decision of Benarshilal katurka which is already highlighted personal effects of moveable nature are not capital assets hence not liable to capital gain tax
Mohit Jangid
(Article)
(141 Points)
Replied 01 December 2011
in cit v. benarshilal katarika, hrble hc held that silver utensils are thing of personal effect and are not capital asset, hence no capital gain shall levy.
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