Understanding the Concept of Possession Change
The question asks to identify the term that describes when the possession of goods moves from one person to another with a defined objective.
Analyzing the Options
Let's look at each option to see how it relates to the change of possession of goods:
- Pledge: This involves transferring possession of goods from a debtor to a creditor as security for a debt or loan. While possession changes, it's specifically for securing an obligation.
- Guarantee: This is a promise to cover the debt or default of another person. It doesn't typically involve the physical transfer of goods.
- Indemnity: This is a contractual promise to compensate someone for potential loss or damage suffered. Like a guarantee, it's about compensation, not usually the transfer of possession of goods.
- Bailment: This is a legal arrangement where one person (the bailor) delivers goods to another person (the bailee) for a specific purpose. The key elements are the transfer of possession (not ownership) and a specified purpose, with the understanding that the goods will be returned or otherwise dealt with according to the bailor's instructions.
Defining Bailment
Bailment perfectly fits the description provided in the question. It is fundamentally about:
- A change of possession of personal property (goods).
- Delivery is made from one person (bailor) to another (bailee).
- The delivery is for a specific purpose (e.g., repair, safekeeping, transport).
- There is an explicit or implied understanding that the goods will be returned or disposed of as directed by the bailor once the purpose is accomplished.
Conclusion
Based on the definitions, the act of changing the possession of goods from one person to another for a specific purpose is termed as Bailment.
Important Questions from Deduction and Collection of tax at source
- Identify the person as per Income Tax Act, for whom the Mitakshara School of Hindu law related to succession is applicable to __________.
- Which of the following statements is not correct ?
- Assertion (A) : If the interest is payable outside India, tax must be deducted at source.
Reason (R) : If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.
Select the correct answer from the code given below : Income received and accrued or arisen outside India from a business controlled in or a profession set up in India, is taxed in the hands of which of the following?
a. Every citizen of India
b. Domicile of India
c. Ordinary Resident
d. Non-Ordinarily Resident
e. Non-Resident
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
LIST-I LIST-II A. Deduction of Tax at source on fees for professional and technical services I. Section 194 B B. Deduction of Tax at source from income by way of rent II. Section 193 C. Deduction of Tax at source from winnings from lotteries or crossword puzzles, etc. III. Section 194-I D. Deduction of Tax at source from interest on securities IV. Section 194 J
Choose the correct answer from the options given below:
