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2021 (7) TMI 605 - AT - Income TaxAddition of substantive and protective basis - Addition for alleged donation to an educational institution - As submitted by the Ld. AR that since the additions on substantive basis have been settled by the said assessee therefore the additions made on protective basis in the hands of assessee are required to be deleted - HELD THAT:- Admittedly the additions were made in the hands of the assessee on protective basis whereas the additions were made in the hands of Dr. Ahmad Tariq Jameel, on substantive basis. Further it is a matter of record that the tax liability of Dr. Ahmad Tariq Jameel have been settled in the scheme of the revenue and revenue had also issued form 3 in favour of Dr Jameel. As the tax liability on substantive basis have been settled by Dr Jameel, therefore the tax liability on protective basis, cannot stand or sustained in the eyes of law after the settlement of the tax liability on substantive basis in the hands of assessee, as the additions were made on protective basis in the hands of the assessee with a view to protect the interest of the revenue. Once the interest of the revenue is protected by way of settlement of the tax liability in the hands of the right person, there is no occasion to tax the assessee who had been assessed on protective basis. Additions in the hands of the assessee are required to be deleted.
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