2013 (3) TMI 31

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....Delhi Bench 'B' New Delhi has referred the following question of law under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act", for opinion of this Court. "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the protective assessment has to be treated as substantive assessment as the AO failed to indicate about t....

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....tive assessment would be made in the hands of the real owner of the income. Feeling aggrieved the assessee preferred an appeal before the Commissioner of Income Tax (appeals), Agra, who vide order dated 24th March, 1988 had held that protective assessment be made on the income and in the status shown by the assessee and thus he directed the Assessing Officer to include the income of the trust o....

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....ficer was to make a substantive assessment. He submitted that the Apex Court in the case of I.T.O. vs. Bachu La Kapoor, (1966) 60 ITR 74 has categorically held that when there was a doubt as to which person among two was liable to be assessed, parallel proceedings might be started against both; and also laid down an equitable procedure to be followed to make protective assessment. He further submi....

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....to the various plea raised by the learned counsel for the parties. It is not in dispute that the Assessing Officer was not aware as to who was the real owner of the income and in whose hands the substantive assessment has to be made. However, it would not mean that a protective assessment cannot be made against a person who has voluntarily filed a return. If the Assessing Officer has doubt abou....