2019 (7) TMI 1917

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.... up for scrutiny and the assessement was concluded under section 143(3) of the Income Tax Act, 1961 (in short 'the Act') vide order dated 26.12.2016, wherein the assessee's income was determined at Rs. 42,94,952/-. This was, in view of the Assessing Officer (AO) disallowing the exemption of Rs. 34,50,172/- claimed under section 10(38) of the Act towards LTCG on sale of 7340 shares of M/s. Sunrise Asian Ltd., and treating the same as unexplained cash credit under section 68 of the Act, in the year under consideration. The assessee's appeal was dismissed by the CIT(A)-2, Bangalore vide order dated 31.01.2019. 3. Aggrieved by the orders of CIT(A)-2, Bangalore, dated 31.01.2019 for Assessment Year 2014-15, the assessee has preferred this app....

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.... of hearing to the assessee after furnishing details / copy of the details based on which the impugned assessment order has been passed. The learned AR submitted that in the light of the facts of the present case and as per this judgment of Hon'ble Karnataka High Court, in the case on hand also, the entire matter should be restored back to the file of the AO for fresh decision with same directions. 4.2 Per contra, the learned DR supported the orders of the authorities below. 4.3.1 I have considered the rival submissions and first of all, I reproduce Para No.8of the judgment of Hon'ble Karnataka High Court rendered in the case of M/s. Chandra Devi Kothari (Supra) and this is as under: "8. In the light of the facts and circumst....

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....n. 5. In the result, the assessee's appeal for Assessment Year 2014-15 is allowed for statistical purposes. Order pronounced in the open court on this 3rd day of July, 2019. ============= Document 1 Sl. No. 1 2 GROUNDS OF APPEAL a) The orders of the authorities below in so far as these are against the Appellant is opposed to law, weight of evidence, natural justice, probabilities, facts and circumstances of the Appellant's case. b) The appellant denies itself liable to be assessed on a total income of Rs.42,94,952/- as against Rs.8,44,780/- returned by the appellant under the facts and circumstances of the case. Disallowance of Long Term Capital Gainof Rs.34,50,172/- : Tax Effect in Rupees ....

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....ase. 4 5 6 d) Without prejudice, the learned CIT(A) erred in not providing an opportunity to cross examine the third party whose statements were used against the appellant on the facts of the case. Thus, the order passed is opposed to principles of natural justice and requires to be deleted on the facts of the case. a) The action of the assessing officer in making additions based on the Circular issued by SEBI, which was not put forth to the appellant for rebuttal is unacceptable under the facts and circumstances of the case. b) The assessing officer erred in treating the transactions entered into by the appellant as accommodative in nature without any corroborative evidence and further the CIT(A) e....