ITAT Allahabad Judgments — December 2021

The Tribunal found that the CIT(A) passed a cryptic and unreasoned order, merely accepting the assessee's submissions without independent verification. Therefore, the appellate order was set aside.

The Tribunal held that the property was purchased by the partnership firm, and the assessee signed as an authorized signatory. Since the Assessing Officer did not properly verify the source of funds from the firm's records, the matter was remanded for fresh adjudication.

The Tribunal condoned the delay in filing the appeal due to the pandemic. It held that the CIT(A)'s order was non-speaking as it dismissed the appeal for non-prosecution without deciding on merits.

The Tribunal held that following the jurisdictional High Court's decision, depreciation is not separately allowable when the net profit is estimated after rejecting the books of accounts. CBDT circulars do not override High Court judgments.