Silver plates- capital asset or not?

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.

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)].

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.............?

thanku all for your help...

but hardik has a very gud question.....kindly help with that also....

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

thnx 'Z'....

I finally have a solution to my problm..... thanku all!!

Thanks Z

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

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

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.