2006 (2) TMI 136 - MADRAS HIGH COURT

Capital gains - assessee purchased a house at Anna Nagar in the name of his wife Smt. Meera after selling the property at Bangalore. But the same was assessed in the hands of the assessee. Hence, as correctly held by the Commissioner of Income-tax (Appeals) as well as by the Tribunal that the assessee is entitled for exemption under section 54 - Whether Tribunal was right in holding that the Department had erred in making an addition on account of investment in jewellery without adequate proof? - Whether Tribunal was right in casting the burden of proof for source of funds for the jewellery purchased on the Department?" - Revenue authorities have not placed any convincing materials to disallow the claim of the assessee. The assessee disclosed the purchase of jewellery weighing five sovereigns in each of the assessment years, viz., 1987-88, 1988-89 and 1989-90 and also the purchase of diamond jewellery. Hence, accepting the explanation offered by the assessee, the Tribunal correctly allowed claim of the assessee.