2019 (7) TMI 432

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....he Income Tax Act, 1961 (in short 'the Act'). Based on information received that the assessee's share transactions (i.e., STCG of Rs. 38,640/- on sale of shares) were carried out through the Mahasagar Securities Services Pvt. Ltd., which were said to be non-genuine, the reassessment proceedings were initiated and notice under section 148 of the Act was issued to the assessee. In response thereto, the assessee requested the Assessing Officer (AO) to consider the original return of income filed on 31.07.2007 as filed in response to the notice under section 148 of the Act. The assessment was concluded under section 143(3) r.w.s. 147 of the Act vide order dated 17.12.2013 wherein the assessee's income was determined at Rs. 1,59,480/-, in view ....

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....law and liable to be quashed. 3.1 In any case the order passed in gross violation of the principles of natural justice and fair play, especially in the absence of the cross examinations of the persons whose averments are sought to be relied upon by the Assessing Officer while passing the order, makes the order totally bad in law and liable to be cancelled. 3.2 The learned Commissioner of Income tax (Appeals) has instead of quashing the impugned order, has just confirmed the order of Assessing Officer without properly considering the facts and circumstances of the case, arguments of the appellant and the law applicable. 3.3. In any case and without prejudice, the orders passed by the authorities below being contrary to blinding dictum ....

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....orities have no support in law and deserve to be rejected in toto. 6. The authorities below have erred in not appreciating the fact that the shares dealt in were of blue chip companies and in no case such shares be treated as bogus or accommodative in nature. The action of authorities below being wholly erroneous both on facts and law applicable is to be negated and the short term Capital Gain as offered by the appellant is to be accepted as such. 7. The appellant denies the liability to pay interest. The interest having been levied erroneously is to be deleted. 8. In view of the above and other grounds to be adduced at the time of hearing, it is requested that the impugned order be quashed or atleast the income from short Term Capita....

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....the eyes of law and ought to be set aside / deleted. In this regard, the learned AR placed reliance on the decision of the Hon'ble Karnataka High Court in the case of Chandra Devi Kothari in W.A. No.39370/2014 dated 02.02.2015 (copy placed on record), submitting that at para 8 thereof, the Hon'ble Court has held that the matter is required to be re-considered by the AO by providing fair and reasonable opportunity of hearing to the assessee after furnishing details / report / copies of statements based on which the impugned assessment order has been passed. It is prayed that in the light of the facts of the case on hand and as per the directions / observations of the Hon'ble Karnataka High Court in the case of Chandra Devi Kothari (supra), t....