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2019 (7) TMI 1917 - AT - Income TaxAddition u/s 68 - disallowing the exemption u/s 10(38) towards LTCG on sale treating the same as unexplained cash credit - HELD THAT - As decided in case of MRS. CHANDRA DEVI KOTHARI 2015 (2) TMI 1313 - KARNATAKA HIGH COURT petitioner has been denied an opportunity of fair hearing by providing copy of the statement and related details regarding the alleged share amount, it is 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. 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 difference in facts and therefore by respectfully following this judgment in the case of Chandra Devi Kothari (Supra), we set aside the impugned order of learned CIT(A) for Assessment Year 2014-15 and restore the matters to the file of the AO for fresh decision with the same directions as were issued - Assessee appeal allowed for statistical purposes.
Issues:
Appeal against assessment order disallowing exemption claimed under section 10(38) of the Income Tax Act - Fair hearing denied by not providing relevant details - Application of judgment of Hon'ble Karnataka High Court - Restoration of matter to AO for fresh decision. Analysis: The appeal was filed against the assessment order disallowing the exemption claimed under section 10(38) of the Income Tax Act for the Assessment Year 2014-15. The Assessing Officer (AO) had disallowed the exemption claimed towards LTCG on the sale of shares and treated it as unexplained cash credit under section 68 of the Act. The CIT(A) upheld the AO's decision, leading to the appeal before the Tribunal. The assessee raised grounds disputing the validity of the assessment order, citing denial of fair hearing by not providing relevant details for rebuttal or allowing cross-examination. The learned AR referred to a judgment of the Hon'ble Karnataka High Court in a similar case, emphasizing the need for a fair opportunity of hearing and providing relevant details to the assessee. The Tribunal considered the submissions and the judgment of the Hon'ble Karnataka High Court, which required a reconsideration of the matter by providing a fair and reasonable opportunity of hearing to the assessee and furnishing relevant details based on which the assessment order was passed. Following the judgment, the Tribunal set aside the CIT(A)'s order for the Assessment Year 2014-15 and restored the matter to the AO for a fresh decision with directions to provide the necessary details to the assessee. The Tribunal refrained from adjudicating on the merits of the addition at that stage, allowing the assessee's appeal for the Assessment Year 2014-15 for statistical purposes. In conclusion, the Tribunal's decision highlighted the importance of a fair hearing and providing relevant details to the assessee in tax assessment matters. By applying the judgment of the Hon'ble Karnataka High Court, the Tribunal ordered the restoration of the case to the AO for a fresh decision, emphasizing the need for procedural fairness and due process in tax assessments.
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