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12. Narendra I. Bhuva vs. Assistant Commissioner
ITA 681/Mum/2003 dated 14.08.2025
AY: 1992-1993. (BOM)(HC)
Capital Gains - Personal effect - Vintage car owned by the Appellant was not his personal effect - the gain arising on sale thereof was liable to be taxed under the head ‘Capital Gains’
The Assessee was a salaried employee. The Assessee had income from house property, share income, dividend, etc. In the course of assessment proceedings, the Assessing Officer noticed that the Assessee has purchased a vintage car namely “Ford Tourer” 1931 Model from one Mr. Jesraj Singh of Delhi sometime in the year 1983 for a consideration of ₹ 20,000/-. The said car was sold for a consideration of ₹ 21,00,000/- to one Mrs. Kamalaben Babubhai Patel. On a query made by the Assessing Officer, the Assessee by a communication dated 28 January 1994, apprised the Assessing Officer that the car was shown as a personal asset in Wealth-tax and same was an exempt asset. The Assessing Officer by an order dated 8 March 1994, added the sum of ₹ 20,80,000/- as income to the Assessee on account of sale of motor car as business income.
The Assessee filed an appeal. The Commissioner of Income Tax (Appeals)
