https://www.taxtmi.com/caselaws?id=754365 ITAT Rajkot dismissed the assessee's appeal against PCIT's revision u/s 263 regarding capital loss claimed on sale of a personal car. The assessee had indexed the car's purchase price and set off the loss against long-term capital gains. PCIT correctly observed that the car was used for daily personal purposes, qualifying as "personal effects" under Section 2(14) exclusions, thus falling outside the definition of capital asset. The Tribunal held that classification depends on actual usage - personal use excludes it from capital asset definition, while business use or holding as collector's item would qualify. Since the assessee failed to demonstrate business use, the loss claim was properly disallowed. en-us Wed, 06 Mar 2024 00:00:00 +0530 Sat, 22 Jun 2024 08:36:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754365 ITAT Rajkot dismissed the assessee's appeal against PCIT's revision u/s 263 regarding capital loss claimed on sale of a personal car. The assessee had indexed the car's purchase price and set off the loss against long-term capital gains. PCIT correctly observed that the car was used for daily personal purposes, qualifying as "personal effects" under Section 2(14) exclusions, thus falling outside the definition of capital asset. The Tribunal held that classification depends on actual usage - personal use excludes it from capital asset definition, while business use or holding as collector's item would qualify. Since the assessee failed to demonstrate business use, the loss claim was properly disallowed. Case-Laws Income Tax Wed, 06 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754365