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2020 (1) TMI 498 - AT - Income TaxAddition On Protective Basis in the hands of the appellant - addition in respect of cash of ₹ 1.30 crores seized from assessee - whether the same addition can be retained in the hands of two assessees, in one on substantive and other on protective basis? - HELD THAT:- We find that CBDT in order dated 20-12-1971 has authorized the Departmental Authorities to cancel the protective assessment where the substantive assessment had attained finality. Departmental Authorities are bound by the Circulars issued by the CBDT, and should take action in the hands of the assessee after verifying the facts in respect of the status of the addition in the hands of Sh. Rajiv Gulati. CIT(A) is not justified in sustaining the protective addition merely on the reason that the assessee has not provided the status of finality of addition in the hands of Sh. Rajiv Gulati. CIT(A) had access to the records of the department and could have ascertained the status of finality of addition. In our opinion, retaining the addition by the First Appellate Authority, in both substantive in the case of one assessee and protective in the hands of another assessee, is not justified. Set aside order of the ld. CIT(A) and restore the matter back to the ld. CIT(A) for deciding afresh in accordance with law after verifying the records that Sh. Rajiv Gulati has finally accepted addition of ₹ 1.3 Crore in his hand. - Appeal of the assessee allowed for the statistical purposes.
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