If Krishna wants, he can give Moksha to everyone.
Bhagavad Gita 18.66:
mām ekaṁ śaraṇaṁ vraja
ahaṁ tvāṁ sarva-pāpebhyo
mokṣayiṣyāmi mā śucaḥ
Meaning:- Abandon all varieties ...
Atman resides in the body as a silent witness and it's not affected (untouched) by anything. Then upon what, our Karmas get transmitted to our next lives?
In other words who is the enjoyer/sufferer of ...
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