1987 (8) TMI 58

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....mely : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the value of paintings was not includible in the wealth of the assessee ? " It relates to the assessment years 1964-65 and 1965-66. The facts of the case giving rise to it may be summarised thus. The assessee, the late Shri Moti Chand Khajanchi, was the karta of his Hindu undivided family. Besides holding movable and immovable properties, he held paintings, manuscripts and other art objects. In the wealth-tax returns for the assessment years 1964-65 and 1965-66, he made a note in them to the effect that drawings, paintings, manuscripts, etc., being not intended for sale were exempt under section 5(1)(xii) of the Act and hence....

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....e-tax on the sale of the disputed paintings as he was not carrying on business and it was not an adventure in the nature of trade. He further contended that these paintings were sold in the national interest on the great persuasion of the Director, National Museum, New Delhi, the previous sale to Vidyapeeth, Sangaria, was effected on account of the great insistence of Swami Keshavanandji in the year 1949-50 and all these paintings and art objects were purchased from his personal money except once. No account of their purchases was ever maintained and his collections were held in high esteem by various authors, curators and lovers of art. He lastly contended that he held the paintings and curios in pursuit of his hobby and he never intended ....