Protective assessment_IT Act

protective assessment is discussed under which section of IT Act, 1961 ?
Replies (5)
Quick Summary
This discussion explores the concept of 'protective assessment' within the Income Tax Act, 1961. While the Act primarily provides for 'regular assessments' under sections 143(3) and 144, a protective assessment is made to safeguard the revenue's interest when income is offered by one party but potentially assessable to another. Participants debate its statutory validity, with some suggesting it's a non-statutory measure used to protect revenue interests.

This is a type of assessments that focus on those assessments which are made to 'protect' the interest of the revenue. Protective Assessment is permissible in law. It is occasioned when an income is offered by one person, while the Revenue considers that such income is assessable in the hands of other.

In the Income Tax Act, 1961 (the Act), there is provision to make only ‘regular assessment’. As per section 2(40) of the Act, ‘regular assessment’ means the assessment made under section 143(3) or section 144. Again as per section 2(8) of the Act, ‘assessment’ includes reassessment; therefore, assessment made under section 143(3) and 144 and 147 is also a ‘regular assessment’. Protective assessment is said to those assessments which are made to ‘protect’ the interest of the revenue
Nice explanation sourav

Thanks for the complement

Nicely explained
Protective assessment is a non-statutory assessment. its not prescribed under the act.
i doubt if its valid under the income tax act.

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