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TMI Blog2023 (3) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A), however, in absence of any evidence to support the contention during the appellate proceedings, CIT(A) dismissed the ground filed by the assessee. AO has also not quantified the loss claimed by the assessee. Accordingly, we deem it appropriate to remand this issue to the file of AO for quantification of loss and set off of same, if any, as per law. As a result, ground No. 3 raised in assessee's appeal is allowed for statistical purposes. - ITA no.1358/Mum./2020 - - - Dated:- 21-3-2023 - Shri G.S. Pannu, President And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Hitesh Shah For the Revenue : Shri P.D. Chogule ORDER PER BENCH The present appeal has been filed by the assessee challenging the impugned order dated 06/12/2019, passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals)-41, Mumbai [ learned CIT(A) ], for the assessment year 2014 15. 2. In this appeal, the assessee has raised following grounds: GROUND 1:- On the facts and in the circumstances of the case, the Learned Commissioner of Income Tax (Appeal) - 41, MUMBAI (hereinafter referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of limited scrutiny‟. However, subsequently, on the basis of ITS/AIR details that the assessee has earned long-term capital gains on the sale of shares of Sunrise Asian Ltd, which has been identified by the Investigation Wing to be one of the scrips used for obtaining bogus long-term capital gains, the scrutiny was converted to complete scrutiny‟ pursuant to approval from Pr.CIT-30, Mumbai. During the course of assessment proceedings, the Assessing Officer ( AO ) considered the information received from the Investigation Wing as well as the statement recorded, during the course of survey and search proceedings, of Mr. Vipul Bhat, who has admitted to having controlled the affairs of Sunrise Asian Ltd and also admitted to the fact that the scrips have been used of providing accommodation entries of bogus long term capital gain. The AO also took into consideration the trade data downloaded from the system that shares of Sunrise Asian Ltd sold by the assessee have been picked up by the entities who are mostly entities of Mr. Vipul Bhat and their names figure in the list of entities divulged by him before the investigation authorities. Accordingly, the AO vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , bank statement highlighting the payment, and copy of Demat account statement. The AO also provided the relevant portion of the statement of Mr. Vipul Bhat who had admitted that companies namely Conart Traders Ltd., Santoshima Tradelinks Ltd., and Sunrise Asian Ltd were just paper companies operated by him in order to facilitate the bogus accommodation entries to its beneficiaries. 8. The AO noted that the scrip was listed on BSE in the financial year 2009-10. In the financial year 2010-11, the trade in the scrip was suspended by the BSE. Thereafter, the suspension was revoked with effect from 16/08/2011 and that trading began on 17/08/2011. The AO also noted that many beneficiaries who have gained by selling the scrip had acquired the shares through preferential allotment from Santoshima Tradelinks Ltd. After the preferential allotment of shares and subsequent merger of Santoshima Tradelinks Ltd with Sunrise Asian Ltd, the active trading in the shares of Sunrise Asian Ltd started with effect from 16/10/2012. The AO noted that Sunrise Asian Ltd is one of the 84 scrips covered by the Investigation Wing and found to be a bogus company, which was formed for facilitating accommodat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany law-related matters, VAT/sales tax documents, professional tax registration documents, personal partnership deeds, common seal and stamps, and PAN card of all the bogus entities, which were controlled, managed and operated by Mr. Vipul Bhat for providing bogus entries, were found at the premises 1407, 14th floor, New Jalphalwadi, Police Colony, TARDEO, Mumbai-400034. It was further found that this premises was neither a registered office of any of the entities nor was related to any of the entities which were searched. The AO observed from the trade data downloaded from the system that shares of Sunrise Asian Ltd, which were sold by the assessee, have been picked up by entities who are major entities of Mr. Vipul Bhat whose names figure in the list of 347 entities divulged by him before the investigation authorities. 10. During the hearing, the learned Authorised Representative ( learned AR ) submitted that the Securities and Exchange Board of India ( SEBI ) had conducted a detailed investigation into the affairs of Sunrise Asian Ltd and the entities who were involved in the price manipulation of shares. However, the assessee was not part of this investigation and thus the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee‟s appeal, is pertaining to the disallowance of set off of carry forward business losses of Rs.61,04,247 under section 72 of the Act. 13. During the hearing, the learned AR submitted that during the year, the assessee in his return of income declared a loss of Rs.61,04,247, which was not set off against the income determined under section 115 BBE of the Act. In this regard, the learned AR placed reliance upon the CBDT Circular No.11/2019, dated 19/06/2019, and submitted that the CBDT has clarified that the assessee is entitled to claim set off of loss against income determined under section 115 BBE of the Act till the assessment year 2016-17. 14. We find that though the issue of non-quantification of business loss declared by the assessee in his return of income was raised before the learned CIT(A), however, in absence of any evidence to support the contention during the appellate proceedings, the learned CIT(A) dismissed the ground filed by the assessee. We find that the AO has also not quantified the loss claimed by the assessee. Accordingly, we deem it appropriate to remand this issue to the file of AO for quantification of loss and set off of same, if any, as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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