Infructuous tax challenge where the disputed addition did not survive in the final assessment and no adverse tax effect remained.

A challenge to reassessment and an alleged addition became infructuous where the return and supporting documents disclosed the property sale transaction, the assessing authority accepted the assessee's share of sale consideration, and no addition ultimately survived in the final assessment. On those facts, there was no continuing adverse tax effect from the disputed issue, so the grievance against the proposed addition could not be sustained and the appellate challenge was dismissed.

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Issues: Whether the assessee's challenge to the reassessment and the addition of Rs. 1 crore survived when the assessed income already reflected the disclosed property transaction and no further addition was made in the final assessment.

Analysis: The return filed belatedly disclosed the sale transaction, and the supporting sale deed, purchase deed and bank statement were placed on record. On verification, the assessing authority found that the assessee's share of the sale consideration had been disclosed and accepted in assessment. Since no addition ultimately survived in the final assessment, there was no adverse tax effect arising from the grievance raised against the alleged addition.

Conclusion: The challenge to the alleged addition was infructuous and rightly dismissed.

Final Conclusion: The appeal failed because the disputed addition did not survive in the assessment, leaving no basis for interference with the appellate order.

Ratio Decidendi: Where the assessment ultimately contains no surviving addition on the disputed issue, the challenge to that issue becomes infructuous and is liable to be dismissed.

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