TaxTMI 
TaxTMI 
2002 (7) TMI 794
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....ing that the transaction cannot be considered as an adventure in the nature of trade and hence deleting the addition of ₹ 78,540." 3. We have heard the rival submissions in the light of material placed before us and precedents relied upon. A sum of ₹ 1,00,000 was credited into the Bank Account of the assessee on 26-8-1991. This was stated to be realised from the sale proceeds of four paintings. The said paintings were disposed of in favour of Shri N.D. Sidhwa as under: "Oil Painting 36"X41" Landscape with Shrin by Badri Narayan ₹ 10000 Oil Painting 26"X34" "View from window" by J. Sabavala 50000 Oil Painting 48"X36" "Oil No. VI" by Rasik Sonhi 30000 Oil Pain....
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....ereinafter called the Act) has itself not been defined in the Act. It is therefore not easy to discern the circumstances which will make a transaction an adventure in the nature of trade. It is not possible to evolve any single test or formula which can be applied in determining whether a transaction is an adventure in the nature of trade or not. The answer to the question must necessarily depend in each case on the total impression and effect of all the relevant factors and circumstances proved therein and which determine the character of the transaction. Where the purchase is made solely with an intention to resell at a profit and the purchaser has no intention of holding the property for himself, the transaction made constitute an advent....
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....me on this count. 8. The next question is whether paintings could be construed to be articles of personal effects. As per the prescription of section 2(14)(ii) of the Act, personal effects, that is to say, movable property (including wearing apparel and furniture, but excluding jewellery) held for personal use by the assessee or any member of his family dependent on him. The meaning of "personal effect" is not exhaustively defined in the Act. It only refers that movable property held for personal use by the assessee or any member of his family dependent on him can be construed as personal effect. Movable property includes wearing apparel and furniture, but excluding jewellery. 9. In the case of G.S. Poddar v. CWT (1965) 57 ITR 2....