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Facts
The Revenue appealed against the Ld.CIT(A)'s order deleting a protective assessment made by the AO on the assessee, Mr. Sundaram Jeganathan. A substantive addition related to this matter was made in the hands of M/s.Dhanalakshmi Srinivasan Charitable Educational Trust, which the Tribunal had already restored to the AO for reassessment.
Held
The Tribunal observed that since the substantive assessment of the Trust was restored to the AO, and the present assessment on the assessee was protective in nature, the Ld.CIT(A)'s order was set aside. The assessee's protective assessment was also restored to the AO for fresh adjudication in accordance with law, ensuring the assessee is heard.
Key Issues
Whether the protective assessment on the assessee should be restored to the Assessing Officer for fresh adjudication, in light of the substantive assessment on a related Trust being remanded back to the AO by the Tribunal.
Sections Cited
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI S.R. RAGHUNATHA
आदेश / O R D E R
PER ABY T. VARKEY, JM:
This is an appeal preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals), Chennai-19 (hereinafter in short "the Ld.CIT(A)”), dated 30.05.2024 for the Assessment Year (hereinafter in short "AY”) 2014-15.
At the outset the Ld.DR for the Revenue, brought to our notice that in this case substantive addition was made in the hands of M/s.Dhanalakshmi Srinivasan Charitable Educational Trust by the AO which decision later came up for examination/adjudication before this Tribunal; and the Tribunal had restored the assessment back to the file of the AO vide order dated 08.11.2024 (ITA Nos. 28,29,30, 31,55,56 & 57/Chny/2024) for AY 2012-13 to 2018-19. Hence, according to the Ld.DR, in the interest of justice and fair play, since protective assessment has been made in the hands of the present assessee Mr.Sundaram Jeganathan, by the AO, which has been deleted by the Ld.CIT(A) passing the impugned order, and since the Tribunal has restored the assessment of M/s.Dhanalakshmi Srinivasan Charitable Educational Trust back to the file of AO (supra), the impugned action of the Ld.CIT(A) should be interfered with and the assessment of the present assessee should also be restored to the file of the AO.
Having heard rival submissions and after perusal of records, we note that substantive addition was made by the AO in the hands of M/s.Dhanalakshmi Srinivasan Charitable Educational Trust and it was protectively assessed in the hands of the assessee. The Tribunal in the case of M/s.Dhanalakshmi Srinivasan Charitable Educational Trust had restored the assessment back to the file of the AO vide Tribunal order dated 08.11.2024 (supra). And since in the present case the AO has made protective assessment in the hands of the assessee, in the light of the Tribunal order in the hands of Trust (supra), the impugned action of the Ld.CIT(A) needs to be set aside back to the file of the AO, so that the AO can take action/assess the income in accordance with law in the hands of
In the result, appeal is allowed for statistical purposes.
Order pronounced on 10th January, 2025.