2003 (1) TMI 51 - HC - Income Tax

Whether on the facts and in the circumstances of the case the Tribunal was justified in holding that in a protective assessment returned income should be accepted and any addition proposed to be made should be made only where the substantive assessment is framed? - we answer the question holding that once the income shown in the name of the firm Taj Oil Trading is assessed and taxed in the hands of Chula Ram there is no question of taxing the same income or any addition in the hands of the present assessee-firm.

Summary

The High Court of Rajasthan considered a case involving a protective assessment where income from trading of edible oils was involved. The court ruled that once income was taxed in the hands of an individual, there was no need to tax the same income in the hands of the firm. The reference application was disposed of accordingly.