Protective Assessment

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 Can any share resource or articles related to protective assessment...how it has impact in appeals or tribunals?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 November 2010 In the words of Dr. Vinod Gupta......
"Though there is no provision in the income tax act authorizing the levy of income tax on a person other than whom the income tax is payable, yet it is open to the authorities to make a protective or alternative assessment if it is not ascertainable who is really liable to pay the tax among a few possible persons......"
it is a kind of assessment whereby the assessing officer, not knowing the true ownership of the asset, the income of which he wants to tax, deems the incomes of all the persons who are actually claiming to have there rights over there.......... further he says........
"it must, however be noted that while protecticve assessment is permissible, a protective order for recovery is not permissible. in making a protective assessment, the authorities are merely making an assessment and leaving it as a paper assessment until the matter is decided (as to whom the asset owned by) one way or another. further more, a protective order of assessment can be passed but not a protective order of penalty."
and as & when the final assesssment is made, the department must recover the tax from the person in whose hands the income is finally assessed.....

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