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2. (a) Without prejudice to the fact that, the share transactions carried out through M/s. Sunchan Securities Ltd. are genuine, the learned CIT (Appeal) has erred in confirming the disallowance of claim of carry forward of short term capital loss of Rs. 28,16,475/- which is incurred while transacting through a broker M/s. Alankit Assignements Ltd. which is registered with the stock exchange and which is not related to Shri Mukesh Choksi.

(b) The Ld. CIT (Appeal) has erred in not considering the reply filed by the appellant as regards the brokers M/s. Alankit Assignments Ltd. and M/s. Sunchan Securities Ltd. which are registered with the stock exchange and which are not related to Shri Mukesh Choksi."

5. It is noticed that before the Assessing Officer and thereafter before the CIT(A), assessee vehemently pointed out that there was no justification for the said action inasmuch as so far as the claim of short term capital loss of Rs.28,16,475/- was concerned, the same was incurred on account of transactions through broker, M/s. Alankit Assignments Ltd., a concern which was no way related to Shri Mukul Choksi or his group; and, so far as the incurrence of speculation loss of Rs.85,11,569/- was concerned, assessee Ms. Kokila S. Ajmera & Ors.

determination of tax liability, either during the year or in the subsequent assessment years.

8. So far as the short term capital loss is concerned, the learned representative vehemently brought out that at each stage assessee has asserted that the transactions were through M/s. Alankit Assignments Ltd., which was a broking concern duly registered with the stock exchange and not related to Shri Mukesh Choksi or his group in any manner. In support, copies of the broker notes issued by M/s. Alankit Assignments Ltd., ledger account of the broker and a copy of the bank statement highlighting the entries of payments and receipts from/to the above stated broker were referred to. Pertinently, it has been pointed out on the basis of the relevant discussion in the orders of the authorities below that there is no negation to the plea of the assessee that the said broker was not an entity belonging to Shri Mukesh Choksi group of concerns. The learned representative quite fairly submitted that the assessee would be satisfied if the matter is restored back to the file of the Assessing Officer for appropriate verification of its claim of M/s. Alankit Assignments Ltd. not being part of Shri Mukesh Choksi group of concerns and also that the transactions carried out through it were indeed genuine.

so far as the determination of assessee's tax liability in the instant as well as in the subsequent years is concerned. The action of the Assessing Officer is quite nugatory and does not result in any variation in tax liability determined by the assessee in its returns of income in the instant as well as in the assessment years up to 2012-13 qua the said speculation loss is concerned. Therefore, we do not find any reasons to uphold the action of the income- tax authorities on this aspect.

11. Insofar as the claim of carry forward of short term capital loss of Rs.28,16,475/- transacted through broker, M/s. Alankit Assignments Ltd. is concerned, on this aspect we find that the preliminary plea by the assessee has not been properly adjudicated. Notably, the entire assessment is based on the findings and information resulting from search proceedings in the case of Shri Mukesh Choksi and his group concerns. The counter argument by the assessee was that M/s. Alankit Assignments Ltd. was not a concern related to Shri Mukesh Choksi and, in support, the relevant documents being broker note, bank statement, etc. was produced. We find that the said plea has not at all been addressed by the Assessing Officer or by the CIT(A). The aforesaid plea is a fundamental aspect, which needs to be thrashed out at the beginning itself, an approach which is conspicuous by its absence in the orders of the authorities below. Therefore, we deem it fit and proper to set- aside the aspect relating to assessment of assessee's claim of carry forward of short term capital loss of Rs.28,16,475/- back to the file of the Assessing Officer. The Assessing Officer shall consider the aforesaid plea of the assessee appropriately and proceed thereafter, as per law. We may clarify here that even if it is found that the concerned broker, M/s. Alankit Assignments Ltd. is not a part of Shri Mukesh Choksi group of concerns, yet, Ms. Kokila S. Ajmera & Ors.