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2023 (9) TMI 949 - ITAT DELHIAddition in the hands of the Assessee Firm on protective basis to protect the interest of the Revenue - addition in capital accounts of the Partnership Firm - why addition in partners’ capital account may not be added back to the income of the assessee? HELD THAT:- It is brought to our notice that the said reassessment proceedings u/s 147 of the Act against the partners of the Assessee Firm was dropped on account of same becoming time barred as per the provision of Section 153(2) of the Act on 31/03/2023, which was not disputed by the DR. It is well settled proposition of law that when substantive addition does not survive on account of being time barred, then the protective addition also does not survive. The said view of ours have been fortified by the order of Ramesh Chand Prem Raj Soni (HUF) [2003 (5) TMI 225 - ITAT JODHPUR]. Accordingly, since the substantive addition has not been survived on account of being time barred, consequently, the protective addition made in the hands of the assessee herein also will not survive, accordingly, we delete the protective addition by setting aside the order of the Lower Authorities.
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