TaxTMI 
TaxTMI 
2019 (5) TMI 1754
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....from business and profession, short term capital gain on sale of shares and income from other sources. The return was processed under section 143(1) of the Income Tax Act, 1961 (in short 'the Act'). Based on information that the assessee was a beneficiary of bogus share dealings through the Mahasagar Group and statement of its key person Shri. Mukesh Choksi who was searched under section 132 of the Act on 25.11.2009, the assessment in the assessee's case was re-opened by proceedings initiated under section 147 of the Act by the Assessing Officer (AO) and the case was taken up for scrutiny. The re-assessment was concluded under section 143(3) r.w.s. 147 of the Act vide order dated 31.03.2016, wherein the assessee's income was determined at R....
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....y 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. 4. The assessing officer had in any case, erred in treating a sum of Rs. 7,75,465/- being Short Term Capital Gain earned on sale of shares as gain arising out of unexplained purchases and sale of shares and taxing a sum of Rs. 4,80,080/- (7,75,465 - 2,95,385) under the head 'Income from other sources' and the learned Commissioner of Income tax (Appeals) has erred in confirming the same. The action of authorities ....
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....in basis for re-opening the assessment for Assessment Year 2008-09 was on account of the search on the Mahasagar Group on 25.11.2009 wherein as per the statement of Mr. Mukesh Choksi, Director of M/s. Mahasagar Securities Ltd., in which he is alleged to have stated that his business activities is to provide accommodative entries for long term and short term capital gains, purchase and sales of shares etc., and he has also provided list of beneficiaries which include the name of the assessee also. It is submitted that neither the copy of the statement of Mr. Mukesh Chokshi nor the list of beneficiaries have been made available to the assessee nor has he been allowed cross-examination of the persons on whose statements, the AO has drawn adver....
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....ding copy of the statement and related details regarding the alleged share amount, I am of the view that the matter requires to be re-considered by the respondent by providing fair and reasonable opportunity of hearing to the petitioner and by furnishing the details / copy of the statement based on which the impugned assessment order has been passed." 4.3.2 From the above Para from the judgment of Hon'ble Karnataka High Court, it is seen that matter was restored back to the file of the AO for fresh decision after providing copy of the statement of Shri Mukesh Choksi and other related details. As per the facts noted by the High Court in the earlier paras of judgment (supra) and as per the facts of the case on hand, there appears to be no ....