Tribunal decision: Appeal partly allowed for business loss, addition confirmed under Section 68. Deficiency not pressed.

The Tribunal partly allowed the appeal by the assessee for statistical purposes, remanding the issue of quantification and set off of business loss under Section 72 of the IT Act to the AO. However, the Tribunal upheld the findings of the AO and CIT(A) regarding the confirmation of addition under Section 68 of the IT Act, dismissing the assessee's appeal on this ground. The deficiency in the CIT(A)'s order was not pressed during the hearing and was dismissed.

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Issues Involved:
1. Deficiency in the CIT(A)'s order.
2. Confirmation of addition under Section 68 of the IT Act.
3. Disallowance of set off of carried forward business loss under Section 72 of the IT Act.

Summary:

Issue 1: Deficiency in the CIT(A)'s Order
The assessee argued that the CIT(A)'s order lacked discussion and was deficient. However, this ground was not pressed during the hearing and was dismissed as not pressed.

Issue 2: Confirmation of Addition Under Section 68 of the IT Act
The assessee challenged the addition of Rs. 73,06,532 as unexplained credit under Section 68, which was initially claimed as exempt long-term capital gains from the sale of shares of Sunrise Asian Ltd. The AO, based on the Investigation Wing's findings and statements from Mr. Vipul Bhat, concluded that the transactions were non-genuine and part of a scheme to provide bogus long-term capital gains. The AO noted significant price manipulation of Sunrise Asian Ltd shares, with an 803% price rise without any substantial corporate announcements. The SEBI investigation also found manipulative trading practices involving Sunrise Asian Ltd and entities to whom the shares were sold. Despite the assessee's claim of genuine transactions through bank payments and dematerialized shares, the AO and CIT(A) found the transactions to be non-genuine. The Tribunal upheld the findings of the AO and CIT(A), dismissing the assessee's appeal on this ground.

Issue 3: Disallowance of Set Off of Carried Forward Business Loss Under Section 72 of the IT Act
The assessee claimed a carried forward business loss of Rs. 61,04,247, which was not set off against the income determined under Section 115 BBE. The assessee relied on CBDT Circular No. 11/2019, which allows set off of loss against income under Section 115 BBE till the assessment year 2016-17. The CIT(A) dismissed this ground due to lack of evidence. The Tribunal remanded the issue to the AO for quantification of the loss and set off as per law, allowing this ground for statistical purposes.

Conclusion:
The appeal by the assessee was partly allowed for statistical purposes, with the Tribunal remanding the issue of quantification and set off of business loss to the AO. The other grounds were dismissed.

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