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2018 (9) TMI 356 - HC - Income TaxProtective assessment - tribunal quashed the order of protective assessment without considering hte deferment application of the revenue - assessment u/s 153C / 153A - It was the specific case of the petitioners before the Tribunal that a request was made to defer the hearing of the appeal on the ground that the assessment in appeal being protective basis and the order of assessment order on substantive basis in case of Gali Janardhan Reddy. The Appellate Commissioner has to decide the matter at the earliest. Therefore, a request was made to defer the appeal before the Tribunal till a decision is taken in the appeal filed by Janardhan Reddy which is a substantive appeal. Held that:- It is not in dispute that in the protective assessment order at Annexure-A there is a reference to the case of Gali Janardhan Reddy which reads as under: In the light of the above evidence, the assessee was required to show cause, vide letter dated 07.01.2013 why an amount of ₹ 194,82,50,000/- for the assessment year 2010-11 and ₹ 37,45,06,000/- for the assessment year 2011-12, should not be brought to tax as his undisclosed business income. Mr. Madhukumar Varma furnished his explanation vide letter dated 24.1.2012 by disassociating himself from the seized material and contradicting his own statements made during the time of search. Hence, his contention was rejected. In such circumstances, considering the evidence on record, the above sum of ₹ 194.82 crores is added protectively in the hands of the assessee and substantively in the hands of Mr.G.Janardhana Reddy as arising from undisclosed sources for the assessment year 2010-11. Though an attempt was made by learned counsel for the respondent, that the said order was set-aside by the Tribunal on 17.10.2016 and the same reached finality. The fact remains that a reassessment order came to be passed as per Annexure-D on 29.12.2017 and that is the subject matter of appeal pending before the Commissioner of Appeals. In all fairness, the Tribunal ought to have decided the application filed for deferment by the petitioners nor deferred the hearing as a decision is taken in the substantive appeals filed by the Janardhan Reddy. Therefore, the same has not been done by the Tribunal. When the application filed by the petitioners is pending before the Tribunal for deferment, it is appropriate for the Tribunal to decide the said application first on its merits and thereafter, can proceed in the appeal.
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