TMI Blog2019 (7) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... onable opportunity of hearing to the assessee and by furnishing the details / copy of the statement based on which the impugned assessment order has been passed. The facts noted by the High Court appears to be similar to the fact situation in the case on hand and therefore by respectfully following the judgment in the case of Chandra Devi Kothari (Supra), I set aside the impugned order of learned CIT(A) for Assessment Year 2007-08 and restore the matter to the file of the AO for fresh adjudication with the same directions as were issued by the Hon ble Karnataka High Court in above judgment. In view of this decision, no adjudication is called for at this stage in respect of other grounds; both legal and on the merits of the addition. - th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,59,480/-, in view of the AO bringing to tax an amount of ₹ 39,177/- (i.e., ₹ 38,640/- + ₹ 537/- of security transaction tax) as Income from Other Sources , which was earlier declared as short term capital gain of ₹ 36,640/- arising on sale of shares through Mahasagar Group. On appeal, the CIT(A), vide order dated 18.03.2019, upheld the AO s order, not for the reason taken by the AO, i.e., that the share transactions are not genuine as it is done through Mahasagar Group; but on the grounds that (a) contract note for purchase / sales are not issued by broker of recognized stock exchange, (b) the purchase and sale are off market and (c) the transactions do not qualify as spot delivery contracts. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he law applicable. 3.3. In any case and without prejudice, the orders passed by the authorities below being contrary to blinding dictum of the jurisdictional High Court are bad in law and are liable to be quashed. 4. The assessing officer had in any case, erred in treating a sum of ₹ 39,177/- being short term capital gain earned on sale of shares as 'Income from other sources' and the learned Commissioner of Income tax (Appeals) has erred in confirming the same. The action of authorities below has no support in law; is contrary to facts and evidence available and therefore deserves to be rejected. 5.1 In any case, the learned CIT(A) has erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fered 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 Capital Gain earned on sale of shares as returned by the appellant be accepted, the assessment of Short term capital gain earned on sale of shares as Income from Other Sources be deleted and the interest levied be also deleted. 4.1 The learned AR for the assessee has drawn the attention of the Bench to the Assessment Order to highlight the fact that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered 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), the entire matter be restored back to the file of the AO for fresh adjudications with the 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.8 of the judgment of Hon ble Karnataka High Court r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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