Protective assessment fails once the same income is finally assessed in the firm's hands, barring double taxation.

Protective assessment cannot be sustained where the same income has already been finally and substantively assessed in another person's hands. The income from matinee shows was held to belong to the firm and was assessed accordingly; the assessment in the assessee's hands was only contingent on failure of the firm's assessment. Once the firm's assessment was upheld, the protective assessment had no legal basis and double assessment of the same income was impermissible. The protective addition was therefore unjustified and could not be confirmed.

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Issues: Whether the protective assessment made in the hands of the assessee could be sustained after the very same income had already been finally assessed in the hands of the firm.

Analysis: The income from the matinee shows was held to belong to the firm and was assessed accordingly. The protective assessment in the assessee's hands was only intended to operate if the assessment against the firm failed. Once the firm's assessment had been upheld, the same income could not in law be assessed twice, and the protective assessment ceased to have any basis.

Conclusion: The protective assessment was not justified and could not be confirmed.

Ratio Decidendi: A protective assessment cannot survive where the very same income has already been finally and substantively assessed in another person's hands, because double assessment of the same income is impermissible.

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