Protective assessment creates no present appellate grievance where the statutory conditions for appeal are not met.

An appellate right under section 246(1)(c) arises only where there is a present assessment order against the assessee that satisfies the statutory conditions for challenge. On the facts, the assessment was made in a protective HUF capacity, while any real grievance would arise only in the individual assessment, which was not before the appellate authorities. The Tribunal held that the protective assessment did not bind the individual assessee and could not be used for his benefit, so there was no present ground to interfere and the appeal was not maintainable.

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Issues: Whether an appeal lies against a protective assessment and whether the Appellate Tribunal could interfere with the order of the Appellate Assistant Commissioner in such proceedings.

Analysis: The appellate right under section 246(1)(c) of the Income-tax Act, 1961 was held to arise only where an assessment order is passed against the assessee and the statutory conditions for challenge are satisfied. On the facts, the assessment was made in a protective HUF capacity while the real grievance, if any, would arise only in the individual assessment of Shri Jhamaklal, which was not before the appellate authorities in these proceedings. The Tribunal held that an order in the protective assessment would not bind the individual assessee and could not be used for his benefit, and therefore there was no present ground for interference.

Conclusion: The appeal was held to be not maintainable on these facts and no interference with the Appellate Assistant Commissioner's order was warranted.

Final Conclusion: The protective assessment appeal was rejected, leaving the assessee to seek appropriate relief only after the individual assessment, if any, was finalised.

Ratio Decidendi: A protective assessment does not furnish a present appellate grievance unless the statutory conditions for appeal are met and the assessment order is one that can presently and legally be challenged by the assessee.

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