ITAT Allahabad Judgments — April 2021

The Tribunal held that the initiation of penalty proceedings was invalid because the Assessing Officer did not specify the exact charge (concealment or inaccurate particulars) in the show cause notice. Furthermore, levying penalty on both grounds without a clear finding renders the order unsustainable.

The Tribunal held that the addition on account of business income was wrongly classified under Section 69 and should be treated as business income. The addition for unexplained investment in property was deleted as the assessee explained the source. The issue of unexplained bank deposits was remanded for verification, and the deduction under Section 80TTA was to be allowed if eligible.