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2019 (7) TMI 1918 - AT - Income TaxAddition u/s 68 - addition of sale consideration received on sale of shares as income of the assessee - HELD THAT - Identical issue was considered by the SMC bench of Bangalore Tribunal in assessee s brother case named Sri Vinod Kothari (HUF) 2019 (7) TMI 1917 - ITAT BANGALORE has restored the issue to the file of Assessing Officer for examining it afresh as per directions issued by Hon ble Karnataka High Court in the case of Chandra Devi Kothari 2015 (2) TMI 1313 - KARNATAKA HIGH COURT As the facts prevailing in the instant case is identical nature following the aforesaid decision restore all the issues to the file of Assessing Officer with similar directions mentioned in ITAT Order (supra) for examining them afresh. Appeal of the assessee allowed for statistical purposes.
Issues:
Challenge to addition of sale consideration as income under Section 68 of the Income Tax Act, 1961. Analysis: The appeal was filed by the assessee against the order passed by the Ld Commissioner of Income Tax (Appeals) confirming the addition of sale consideration received on the sale of shares as income under Section 68 of the Income Tax Act, 1961. The assessee sold 9,000 shares and claimed Long Term Capital Gains (LTCG) with exemption under Section 10(38) of the Act. However, the Assessing Officer categorized the shares as Penny Stocks and considered the transactions as arranged, leading to the addition of the sale consideration as income. The learned CIT (Appeals) upheld this decision. The learned Authorised Representative pointed out a similar issue considered by the SMC bench of Bangalore Tribunal in a related case, where the matter was restored to the Assessing Officer for fresh examination based on directions from the Hon'ble Karnataka High Court. The representative requested a similar restoration for the present appeal. After hearing both parties, the Tribunal observed the previous decision regarding a similar issue and decided to set aside the order of the learned CIT (Appeals) and restore all issues to the Assessing Officer for re-examination with similar directions as per the previous case. The appeal of the assessee was treated as allowed for statistical purposes. The judgment was pronounced in open court on 31st July 2019.
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