Consider this point $A$, just at the surface of any liquid exposed to atmosphere. The hydrostatic pressure exerted by this liquid of height $h$ is $h\rho g$. My confusion is tha that this pressure should be transmitted in all directions, so shouldn't Point A experience this pressure as well?
The net pressure at A should be : "$h\rho g$ $-$ $P_a$". But, this obviously sounds absurd, the pressure at $A$ is considered to be just atmospheric pressure.
Where could I have gone wrong (excuse me for the not so good diagram)?