THE COMMISSIONER OF INCOME-TAX, MADHYA PRADESH, BHOPAL vs H.H. MAHARANI USHA DEVI

The Supreme Court held that heirloom jewellery, although not used daily, qualifies as 'personal effects' under Section 2(14) of the Income-tax Act, 1961, and thus the sale of such jewellery does not result in taxable capital gains. The Court affirmed the High Court's decision that the nature of the jewellery, meant for personal use during ceremonial occasions, does not negate its classification as personal effects. Consequently, the appeal against the High Court's ruling was dismissed, upholding the assessee's claim.