- (1.) On an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the gain of Rs. 11,650 resulting from the sale of jewellery, precious stones, etc., was not assessable as the business profit ?"
(2.) The assessee-Hindu undivided family filed a return of income on September 11, 1979, declaring total income of Rs. 11,220. Notice was issued under Section 143(2) of the Income-tax Act, 1961. The item, which has been sold was declared under the Voluntary Disclosure Scheme showing value of Rs. 4,350. The Special Bench of the Tribunal as well as the Tribunal in this case found that the assessee has not carried on any business in jewellery, precious stones, etc., and when the asset was declared, the item in question was treated as capital asset. Unless the asset is converted into stock-in-trade account, there is no question of treating the profit on sale of such item as business profit.
(3.) We find no infirmity in the order of the Tribunal. In the result, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.;