Protective assessment cannot be sustained in appeal once the substantive addition is deleted and left unchallenged.

Protective assessment cannot be confirmed in appeal as a substitute for determining the correct person chargeable to tax. Where the substantive addition in the assessee's hands had already been deleted and the Revenue did not challenge that deletion, there was no basis to retain the corresponding protective addition. The Tribunal held that an appellate authority must decide real chargeability rather than sustain an alternative assessment without supporting substantive tax liability. The protective addition sustained by the CIT(A) was therefore vacated, while the relief on the substantive addition remained undisturbed.

---

---

Issues: Whether the appellate authority was justified in sustaining the addition on a protective basis after deleting the substantive addition in the assessee's hands.

Analysis: The addition arose from search material and had been made on a substantive basis in one hand and on a protective basis in the assessee's case. The Tribunal noted that while the Assessing Officer may make alternative assessments where there is doubt as to the correct person chargeable, an appellate authority cannot avoid deciding the issue by sustaining a protective addition. Once the substantive addition in the assessee's hands was deleted and the Revenue had not challenged that deletion, there was no basis to retain a protective addition in appeal. Protective assessment cannot be confirmed by the appellate authority as a substitute for deciding the real chargeability of the income.

Conclusion: The protective addition sustained by the CIT(A) was not justified and was vacated. The assessee succeeded on the protective assessment issue.

Final Conclusion: The appeals were allowed to the extent that the protective additions were deleted, while the relief granted on the substantive additions remained undisturbed.

Ratio Decidendi: An appellate authority cannot sustain a protective assessment as a substitute for determining the person in whose hands the income is truly assessable; protective assessment is a device available at the assessment stage, not for appellate confirmation.

---