TaxTMI 
TaxTMI 
2006 (2) TMI 136
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....sing Officer, while completing the assessment for the assessment year 1990-91 under section 143(3) of the Income-tax Act (hereinafter referred to as "the Act") on March 26, 1993, made the following additions: 1. Business: Income from tea shop/cold drinks 1,08,000 2. Exemption claimed under section 53 35,000 3. Other sources: (i) Investment in purchase of property at 220, Mint Street, Madras 70,000 (ii) Investment of purchase of jewellery 1,30,560 Against the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), who allowed the appeal only in respect of the capital gains and upheld the order of the Assessing Officer with regard to the investment in je....
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....vidual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head 'Income from house property' (hereafter in this section referred to as the original asset)" and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased or has within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section,....
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....come under sub-section (1) of section 139) in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i....
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....bstantial arises for consideration. Accordingly, the first question fails and the same is rejected. Issue No.2: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the Department had erred in making an addition on account of investment in jewellery without adequate proof?" Issue No.3: "Whether, on the facts and circumstances of the case, the Tribunal was right in casting the burden of proof for source of funds for the jewellery purchased on the Department?" The second and third questions are inter-related with regard to the purchase of jewellery, they are dealt with together. It is the case of the assessee that his father-in-law was a landlord and these jewels were gifted to his wives by him. B....