Tribunal partially allows appeal, deletes additional amounts on issues 2 & 3, upholds disallowance of share trading loss.

The Tribunal partly allowed the appeal of the assessee, deleting the additional amounts added on issues 2 and 3, while upholding the disallowance of loss on trading in shares in issue 1.

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Issues involved:
The appeal against the order of the National Faceless Appeal Centre under the Income Tax Act, involving additions made by the Assessing Officer on various grounds.

Issue 1 - Disallowance of loss on trading in shares:
The Assessing Officer disallowed a loss claimed by the assessee on share trading, amounting to Rs. 6,43,238, considering it as not genuine. The Tribunal upheld this decision based on the nature of the transactions, involving a penny stock company and the lack of substantiating evidence.

Issue 2 - Double addition on loss of sale of securities:
The Assessing Officer made a double addition of Rs. 12,89,526 in the hands of the assessee regarding the loss on the sale of securities. The Tribunal found this double addition to be incorrect and deleted the additional amount added by the AO.

Issue 3 - Disallowance under section 14A and interest income addition:
The Assessing Officer disallowed Rs. 5,775 under section 14A and added Rs. 2,60,354 as interest income due to discrepancies in the 26AS statement. The Tribunal found that the interest income addition was based on incorrect information and directed the AO to delete the same.

In summary, the Tribunal partly allowed the appeal of the assessee, deleting the additional amounts added on issues 2 and 3, while upholding the disallowance of loss on trading in shares in issue 1.

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