THOMAS CHANDY,KOTTAYAM vs. NATIONAL E-ASSESSMENT CENTRE, KOCHI

It emerges at the outset that both the learned lower authorities have added “protective” long term capital gain amounting to Rs. 3,70,48,888/- in assessee’s hands followed by the very income assessed on substantive for the assessment year 2012-13. Meaning thereby that it is assessee only in whose hands both these substantive and protective assessments have been framed regarding the very impugned long term capital gain addition. That being the clinching case, we quote Thomas Chandy hon'ble apex court’s landmark decision in [1961] 43 ITR 387 (SC) Lalji Haridas vs. ITO, setting the law of such a protective assessment framed on ex abundanti cautela i.e., “out of an abundant caution:” reading as follows: "In cases where it appears to the income tax authorities that certain income has been received during the relevant previous year but it is not clear who has received the income and prima facie it appears that the income may have been received either by A or B or by both together, it would be open to the relevant income tax authorities to determine the said question by taking appropriate proceedings both against A and B."