Tribunal allows appeal on ex-parte order, share certificate deduction, and capital gain addition.

The appeal in the case involved the dismissal of issues related to an ex-parte order and reopening of assessment as not pressed. The Tribunal allowed the deduction of Rs. 5000 for a share certificate, reversing the CIT(A)'s decision. Additionally, the Tribunal allowed the appeal regarding the addition of Rs. 5,65,185 for alleged short-term capital gain, finding no basis for the addition and reversing the lower authorities' decisions. Ultimately, the appeal of the assessee was allowed in its entirety.

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Issues Involved:
1. Ex-parte order under Section 147 read with Section 144 of the Income Tax Act, 1961.
2. Reopening of assessment under Section 148 before the original assessment was time-barred under Section 153.
3. Disallowance of Rs. 5000 paid for the share certificate of the property.
4. Addition of Rs. 5,65,185 for alleged short-term capital gain from dealings in shares.

Detailed Analysis:

Ex-parte Order and Reopening of Assessment:
- Issue: The assessee contended that the Assessing Officer (AO) erred in passing an ex-parte order under Section 147 read with Section 144 without providing an effective opportunity of being heard, and in reopening the assessment under Section 148 before the original assessment was time-barred under Section 153.
- Decision: The assessee's representative did not press these grounds. Consequently, these issues were dismissed as not pressed.

Disallowance of Rs. 5000 for Share Certificate:
- Issue: The assessee challenged the disallowance of Rs. 5000 paid for the share certificate of the property.
- Facts: The assessee sold a property for Rs. 7,11,000, while the stamp value was Rs. 19,50,760. The AO treated the entire stamp value as income due to the absence of cost of acquisition details. The assessee later claimed a cost of acquisition of Rs. 1,99,000 and an additional Rs. 5000 for the share certificate.
- CIT(A) Decision: The CIT(A) accepted the cost of acquisition but disallowed the Rs. 5000 due to insufficient documentary evidence.
- Tribunal Decision: The Tribunal found that the assessee provided a share certificate worth Rs. 5000 from Om Dharam Jivan Association, which was not doubted by the authorities. The Tribunal held that the share certificate cost should be considered part of the property's cost and allowed the deduction, setting aside the CIT(A)'s order.

Addition of Rs. 5,65,185 for Short-term Capital Gain:
- Issue: The assessee contested the addition of Rs. 5,65,185 as short-term capital gain from share dealings.
- Facts: The AO noted that the assessee sold shares worth Rs. 5,65,185 but did not provide the cost of acquisition, treating the entire amount as income. The assessee claimed a profit of Rs. 2,250 from share trading and provided supporting documents.
- CIT(A) Decision: The CIT(A) confirmed the AO's addition, stating the assessee did not disclose all transactions and failed to explain the source of investment.
- Tribunal Decision: The Tribunal found that the assessee dealt in only 6 scripts, not 45 as suggested by the CIT(A). The Tribunal concluded that the assessee incurred a loss of Rs. 674 on L&T shares and a total profit of Rs. 2,250 from all scripts. The Tribunal held that there could be no addition for the sale of L&T shares and no addition for the source of investment without prior notice to the assessee. The Tribunal reversed the lower authorities' orders and allowed the assessee's appeal.

Conclusion:
- The appeal concerning the ex-parte order and reopening of assessment was dismissed as not pressed.
- The Tribunal allowed the deduction of Rs. 5000 for the share certificate, reversing the CIT(A)'s decision.
- The Tribunal also allowed the appeal regarding the addition of Rs. 5,65,185, finding no basis for the addition and reversing the lower authorities' decisions.

Order Pronounced: The appeal of the assessee was allowed in its entirety.

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