1996 (3) TMI 112

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....eferred the following question of law arising out of the Tribunal's order dated March 14, 1983, under section 256(1) of the Income-tax Act, 1961, in respect of the assessment year 1978-79 : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that precious stones declared under the Voluntary Disclosure Scheme, 1975, were not a capital asset and no ....

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....Officer, A-Ward, Jaipur, while finalising the assessment said that the amount declared in the disclosure had already been accounted for in the assessment year 1977-78. It has not been established as to whether the assessee had any amount surplus from the disclosure to be introduced this year. It was found that the assessee had introduced the capital declared in the disclosure capital of Rs. 49,950....

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....2 and no capital gain arises. It was also observed that the assessee has filed copies of the assessment orders from 1962-63 to 1966-67 from which it is evident that he was in possession of the precious stones representing his stock-in-trade for which the disclosure was made and which were contributed towards capital by the assessee in the firm, Jus Gems, in the assessment years 1977-78 and 1978-79....

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....ntention to contribute the share capital of the firm or capital has been contributed by the partner to reduce the tax and is merely a device. Under section 2(14)(i) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include (i) any stock-in-trade, consumable stores or raw materials held for the purpose of his busin....