Bombay High Court rules vintage car sale subject to capital gains tax without proof of personal use

The Bombay High Court held that the sale of a 1931 Ford Tourer by Mumbai resident Narendra Bhuva is subject to capital gains tax, as there was no proof of its personal use. 

Bhuva bought the car in 1983 for ₹20,000 and sold it in 1992 for ₹21 lakh, claiming exemption as a personal asset.

The Assessing Officer and the ITAT rejected this claim due to a lack of evidence.

The Court agreed, noting that ownership alone does not qualify as personal use, and Bhuva did not provide proof of expenses or exclusive personal usage. The appeal was dismissed.

[Narendra I. Bhuva v Assistant Commissioner of Income Tax]