ITAT held that the assessee trust is, in principle, entitled to...

ITAT held that the assessee trust is, in principle, entitled to carry forward the claimed deficit, but remitted the matter for fresh adjudication. The Tribunal found the CIT(A) erred in effectively dismissing the appeal for non-prosecution and failed to decide the claim on its merits, rendering the impugned order unsustainable. Because the assessee did not satisfactorily demonstrate to the AO the source of funds alleged to be unsecured loans, the computation of the deficit requires verification. The matter is restored to the file of the AO with directions to examine the substantiation of the deficit and loan sources, verify the computations, and decide the issue afresh in accordance with law.