Tribunal remits addition issue under Section 69C for fresh examination, dismisses appeals on depreciation and ESOP expenses.

The Tribunal remitted the issue of addition under Section 69C back to the AO for fresh examination for all assessment years under consideration. The appeals regarding additional depreciation and ESOP expenses were dismissed as not pressed, allowing the appeals for statistical purposes.

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Issues Involved:
1. Deletion of addition made under Section 69C by the CIT(A).
2. Deletion of disallowance of additional depreciation by the CIT(A).
3. Disallowance of ESOP expenses deleted by the CIT(A).

Summary:

1. Deletion of Addition Made Under Section 69C by the CIT(A):

The assessee, engaged in stock and share brokerage, was subjected to a search operation on 13/07/2016, leading to the issuance of a notice under Section 153A. The Assessing Officer (AO) made additions under Section 69C for unexplained expenditure and unaccounted receipts, which were contested by the assessee. The CIT(A) deleted these additions, referencing a similar case involving M/s Indiabulls Financial Services Ltd. The Tribunal noted that the additions were based on a Cash Transaction Record (CTR) seized during the search, which had already been addressed in settlement proceedings involving 16 entities of the Indiabulls group. The Tribunal remitted the issue back to the AO for fresh examination to verify if the additions were covered by the settlement, emphasizing that the AO must establish if the impugned additions were already accounted for in the settlement.

2. Deletion of Disallowance of Additional Depreciation by the CIT(A):

During the hearing, the Department's Representative did not present arguments regarding the deletion of disallowance of additional depreciation. Consequently, the Tribunal dismissed the grounds related to this issue as not pressed.

3. Disallowance of ESOP Expenses Deleted by the CIT(A):

Similarly, no arguments were presented by the Department's Representative concerning the deletion of ESOP expenses disallowance. The Tribunal dismissed the grounds related to this issue as not pressed.

Conclusion:

The Tribunal remitted the issue of addition under Section 69C back to the AO for fresh examination for all assessment years under consideration (2013-14, 2014-15, 2015-16, and 2017-18). The appeals concerning additional depreciation and ESOP expenses were dismissed as not pressed. The appeals were allowed for statistical purposes.

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