Assessment
This query is : Resolved
30 July 2013
I have a very rough idea of Protective Assessment. I did not understand the nature of assessment. Kindly guide me in understanding the same.
30 July 2013
In cases where it appears to the income-tax authorities that certain income has been received during the relevant previous year but it is not clear who has received that income, and prima facie it appears that the income may have been received either by A or by B or by both together, it would be open to the relevant income-tax authorities to determine the said question by taking appropriate proceedings both against A and B to protect the interest of the revenue.
When the issue becomes settled before higher authorities final assessment will be crystalized either upon A or B and the protective assessment against the other person cancells automaticallay.
Though the AO can pass protective assessment, he/she can't initiate recovery proceedings on the protective assessment.
When the issue becomes settled before higher authorities final assessment will be crystalized either upon A or B and the protective assessment against the other person cancells automaticallay.
Though the AO can pass protective assessment, he/she can't initiate recovery proceedings on the protective assessment.
30 July 2013
OK. So, protective assessment would be only on one assessee. I assumed it as assessment on both i.e. A and B in your example. So, the income will not be added to both A and B as per your reply.
31 July 2013
In my example ,protective assessment order will be issued by the AO in the name of A and in the name of B. (Two protective assessment orders)
The income covered therein will be included in the protective assessment order issued to A and B. (Same income will reflect in two protective assessment orders).
The income covered therein will be included in the protective assessment order issued to A and B. (Same income will reflect in two protective assessment orders).
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