Is there arising any tax liability on this transfer ?
This query is : Resolved
05 December 2009
An individual person’s Balance Sheet shows (as assets) :- Silver & Silver Utensils Rs. 40,200/- in the FY 2007-2008. He started a proprietorship (Jewellery) business in the FY 2008-2009, by using Silver & Silver Utensils Rs.40,200/- as Opening Stock. Is there arising any tax liability on this transfer ?
05 December 2009
In the case of CIT Vs. Benarashilal Kataruka 185 ITR 493 (Cal.), it has been held that silver utensils consisting of thalis, katoris and tumblers meant for personal use constituted personal effects and the gains arising on sale of such utensils cannot be taxed as capital gains. Therefore, coversion of silver utensils meant for personal use is not a capital asset and hence conversion of its to stock in trade does not give rise capital gain and hence tax is not payable on such conversion.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- GST Rate for Catering Services
- Cash balance limit and property purchases limit
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
