Protective addition under the Black Money Act could not be sustained while substantive assessment continued against the company

Protective addition in the assessee's hands was deleted because the same amount was already being pursued as a substantive assessment against the company under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The Tribunal sustained the Commissioner (Appeals)'s view that a protective addition could not be maintained in these circumstances. In the Revenue's appeal, the matter was closed with liberty to revive it if the proceedings against the company ultimately failed, and the deletion of the protective addition was left undisturbed for the time being.

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Issues: Whether the protective addition made in the assessee's hands could be sustained while the substantive addition was being pursued against the company under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Analysis: The addition had been deleted by the Commissioner (Appeals) on the footing that the same amount was being subjected to substantive assessment in the company's proceedings. That approach was sustained by the Tribunal. In the appeal, the revenue sought closure of the matter with liberty to revive it if the proceedings against the company under the 2015 Act ultimately failed.

Conclusion: The appeal was closed, and the deletion of the protective addition in the assessee's hands was left undisturbed for the time being.

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